NSW is failing to meet housing targets as fresh data reveals a dire drop in new builds, according to the ABS.
The data showed only 10,227 homes were completed between April and June, which is well below state targets and a 15 per cent drop compared to earlier this year.
NSW must build 377,000 homes by 2029 to meet its own targets but current slow rates mean 88,000 homes need to be completed annually for the next three years.
For comparison, 44,700 homes were built in the year between March 2025 and 2026, with only 51,829 commencements in the same period, according to the Property Council of NSW.
Housing construction is falling behind targets. Picture: Brendon Thorne/Getty
Property Council NSW executive director Katie Stevenson said the industry was losing confidence the targets were still possible as projects struggle to finish.
“The March quarter data confirms the reality that NSW still needs to dramatically lift the number of homes being delivered if we’re going to meet the needs of our growing population,” Ms Stevenson said.
“What we’re seeing across the data is a consistent story.
“Construction costs remain elevated, access to finance remains challenging and government taxes, charges and contributions continue to place significant pressure on project viability,” she said.
The Housing Industry Association (HIA) said population growth plays a role in keeping up with housing demand but that it’s a smaller factor in this larger web of issues.
MORE: Tax twist could make Boomers richer
HIA Chief Economist Tim Reardon during the Housing Industry Association breakfast at the Brisbane Convention and Exhibition Centre. Picture: Tertius Pickard
HIA’s chief economist Tim Reardon said last month that the Budget’s $2b in housing investment was a “significant step in the right direction” that aims to lower construction costs.
“Successive governments, across all three tiers, have underestimated the volume of housing required and failed to deliver sufficient infrastructure for that growth,” Mr Reardon said.
“One of the key challenges is the complex approvals system, which leads to protracted time frames, higher approval costs and worsening housing affordability,” said Craig Jennion, HIA executive director Hunter.
(L-R) Peter Harb MD (KDC Group) with Gosford Mayor Lawrie McKinna and Cr Gabby Bowles on site of a 2015 development in Gosford
NSW’s Central Coast Council last week launched a streamlined approvals process under the Accelerated Development Application that aims to fast track eligible proposals.
“When we held our first ‘Building a Strong Foundation for the Future’ forum, the message was clear – Council must improve assessment times,” Central Coast Mayor Lawrie McKinna said.
The HIA says this will help “well prepared, low risk proposals” receive determinations within 10 to 25 days, which “eclipses the average of most councils”.
“If we are going to meet the state’s housing targets and address the housing shortage, new approaches that fast track eligible development applications are needed to reduce the time it takes to secure planning approval,” Mr Jennion said.
English (US) · 