Government red tape blamed for housing crisis adding $117,800 to NSW homes

The gulf between Victoria and NSW home building has widened. Picture: Matt Loxton NSW’s slow build rate is costing home buyers almost $120,000 and an expert says all levels of government are to blame for the worst affordability levels since 1994. New data comparing NSW’s and Victoria’s rates of building new homes has revealed there was 126,000 fewer homes in NSW. That shortfall has added approximately $117,800 to the average price tag of a NSW property, according to the analysis of RBA modelling. MORE: NSW housing market crashes to record low Slow construction has pushed up NSW property prices by an estimated $117,800. Picture: Renee Nowytarger MORE: ‘Dirty’ habit tearing Aussie couples apart Senior economist for the Housing Industry Association, Tom Devitt, said the unaffordability problem is mostly due to the cost of land and infrastructure like roads or sewage. “Since the turn of the century, the price of a typical residential lot has gone up more than six fold,” said Mr Devitt. “Whereas the other costs of construction materials and labour and such have gone up two to three times so still big increases, but over the long-term, land and infrastructure is definitely the number one...