New housing completions in NSW have plunged to the lowest level since the mid 2010s, according to new data from the Australian Bureau of Statistics (ABS).
Against the NSW Government’s target to build 377,000 new homes by 2029, 44,900 new dwellings were completed across NSW in 2025, the lowest in a calendar year since 2014.
The new builds figure is a one per cent decrease from completions in 2024 and falls 39 per cent below the peak number of new builds achieved in 2018.
New home completions in NSW have hit an 11-year low. Picture: NewsWire/Flavio Brancaleone
Urban Development Institute of Australia (UDIA) NSW CEO Stuart Ayres said the state was 30 per cent of the way into the state government’s five-year plan for new homes under the National Housing Accord.
“Rather than moving ahead, we are going backwards when it comes to completing new homes,” he said.
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New residential completions since 2015. Source: UDIA NSW/ABS
With completions stagnating between 44,000 and 47,000 for the last three calendar years, UDIA NSW said the state will fall 150,000 homes behind its five-year target.
Mr Ayres said increasing uncertainty caused by global economic conditions was “only making things harder” for builders to supply new homes.
“When faced with uncertainty, developers and buyers pause decisions,” he said.
“If left unaddressed, this could lead to delayed projects, fewer commencements and a deeper supply shortfall over the next 12 to 24 months.”
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UDIA NSW CEO Stuart Ayres says the state government “must act immediately” to intervene in NSW’s housing shortfall. Picture: Nikki Short
Mr Ayres said the state government cannot afford to “wait and see” how global uncertainty impacts projects.
“Government must act immediately to maintain momentum in the development pipeline by pulling forward practical measures that reduce costs, improve feasibility and stabilise confidence,” he said.
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