New South Wales is facing a deepening housing crisis, with new data revealing the state is significantly behind on its ambitious five-year housing goals.
Recently released council-level figures from the Australian Bureau of Statistics show that building approvals across NSW have fallen well short of what is needed to deliver the government’s target of 377,000 new homes by 2029.
Under the National Housing Accord, 43 councils across Greater Sydney, Illawarra-Shoalhaven, Central Coast, Lower Hunter, and Greater Newcastle are tasked with delivering the bulk of these homes.
However, in the first nine months of the Accord, only 28,984 dwellings were approved — an average of 3,220 per month.
To stay on track, at least 5,366 approvals are required each month, meaning the state is falling short by more than 2,000 homes monthly.
Property Council NSW deputy executive director Anita Hugo warned that only a handful of councils are on pace to meet their targets.
“Our analysis shows that if current approval rates continue at the same pace, only five of the 43 councils with housing targets will meet them by 2029 — Burwood, Canada Bay, Cessnock, Maitland and Hawkesbury,” Hugo said.
She further highlighted the scale of the shortfall: “Of the 43 councils, 19 are currently tracking to deliver 50 per cent or less of the housing targets they’ve been set with Lane Cove, North Sydney, City of Sydney, Woollahra, and Strathfield all currently tracking between 6 and 27 per cent of the approvals needed to be on target.”
The lag in approvals has translated directly into weak completion figures. In 2024, only 45,552 new homes were completed in NSW, down from 47,567 in 2023, while new building commencements also dropped sharply from 46,331 in 2023 to 42,397 in 2024.
Parramatta led the state in approvals, followed by The Hills, Blacktown, and Ryde.
With the State Budget looming, industry groups are urging the government to take urgent action to accelerate housing delivery.
“We’ve seen promising reforms, but unless the Budget turns those reforms into delivery, we won’t close the gap,” Hugo said.
The persistent shortfall in approvals and completions underscores the mounting pressure on NSW’s housing pipeline, raising serious doubts about the state’s ability to meet its 2029 housing targets as demand continues to outpace supply.
