The New South Wales government has released its 2026–27 Intergenerational Report, a long-term assessment of the demographic, economic and fiscal pressures facing the state over the coming decades.
The report sets out the case for expanding housing supply, increasing urban density and pursuing productivity reforms as the state’s population continues to grow.
According to the report, NSW will need to accommodate millions of additional residents in the years ahead, placing sustained pressure on housing availability, infrastructure and essential services.
Treasury modelling included in the report points to the economic benefits of locating more homes near jobs, transport links and community services, framing planning and housing reform as central to the state’s broader economic outlook.
The report also identifies emergency services funding as an area of growing concern.
It forecasts that demand for emergency services will rise as the population expands and as climate-related disasters become more frequent and severe, adding further strain to existing funding arrangements.
This finding comes as a NSW Parliamentary Committee continues its examination of long-term options for reforming the state’s emergency services levy.
Beyond housing and emergency services, the report canvasses the productivity challenges facing NSW over the long term, including workforce constraints, infrastructure delivery timelines and the state’s ability to attract investment.
It presents these issues as interconnected, arguing that improvements in one area, such as housing supply, are closely tied to progress in others, including construction capacity and infrastructure coordination.
The Property Council of Australia has welcomed the report’s findings, particularly its emphasis on housing supply, density and productivity reform, while cautioning that the projections need to be backed by practical measures to get projects built.
Property Council NSW Executive Director Katie Stevenson said the report reflected long-standing advocacy from the property sector on planning, housing supply, productivity and tax settings.
“This report makes clear that NSW can’t accommodate millions more people, lift living standards and maintain essential services without building more homes and making our cities more productive,” said Stevenson.
She said that while planning reforms already underway deserved recognition, rezoning alone would not guarantee new homes were delivered.
Stevenson pointed to construction costs, taxes, charges, infrastructure delays, workforce constraints and access to capital as factors that determine whether developments proceed, arguing these barriers require the same policy focus as planning and assessment reform.
On the emergency services levy, Stevenson said the report’s projections around population growth and climate-related disasters strengthened the case for reconsidering how funding is raised.
“The Intergenerational Report confirms demand for emergency services will increase as NSW’s population grows and climate-related disasters become more frequent and severe, that makes getting the funding model right more important than ever,” said Stevenson.
She said emergency services benefited the whole community and the broader economy, and argued for a broad-based and sustainable funding model shared across those who benefit, rather than additional charges concentrated on a single sector.
Stevenson said extra costs on the property sector would ultimately flow through to tenants, businesses and consumers.
She said the priority now was translating the report’s long-term outlook into a practical delivery plan, including faster and better coordinated approvals, infrastructure aligned with growth, a skilled construction workforce, wider adoption of modern construction methods and investment conditions that allow NSW to compete for capital.
