- 725,000 new dwellings are needed in the greater Sydney area by 2035.
- New home builds expected to fall by 8.9% this year and another 12% in 2024.
- This is the lowest point since 2012. 96,000 dwellings will be built in 2024-25.
Councils across New South Wales need to be “red carded” for failing to meet housing targets, according to the Property Council of Australia (PCA).
The PCA has called upon the next NSW Government to crack down on housing targets and to intervene when targets are not being met.
Property Council’s Acting Executive Director Adina Cirson said recent data shows housing supply is not keeping with demand, and highlights that this is one of the reasons the state is in the grips of a housing crisis.
Ms Cirson said, “Our borders have re-opened for immigration and HIA Chief Economist Tim Reardon said the number of new homes was expected to fall by 8.9 per cent this year and another 12 per cent in 2024.
“By 2025, just 97,820 detached houses are expected to be built. We know we must deliver 725,000 new dwellings by 2035 in the Greater Sydney Region alone.
“Today’s news shows the number of new detached houses will fall to the lowest point since 2012 and just 96,000 dwellings will be built in 2024-25, compared to a peak of 141,000 in 2020-22″ she said.
Construction slowdown
Ms Cirson said the ABS has also released new data which shows the value of total construction work done fell 0.4 per cent in the December quarter, driven by a fall in building work by 1.6 per cent in the December quarter.
While building work is currently 1.4 per cent lower than at the same time last year.
“We are already 100,000 homes behind on existing targets. We can’t afford to be limping to the finish line on housing supply,” Ms Cirson said.
She said while many local councils were working tirelessly to deliver on their housing targets across Greater Sydney and the regions, more needed to be done to ensure all councils are delivering their fair share of additional housing supply.
“Housing targets agreed to as part of state metropolitan/regional plans need to be delivered as part of a minimum standard expected for local councils,” she said.
“Sometimes there are legitimate reasons for under-delivery on targets, but every year of anaemic housing growth works to compound our housing affordability crisis.”
Red Cards
Ms Cirson said it’s critical we shift our focus toward rewarding those local councils that deliver on the community’s housing needs, while red carding councils who refuse to share in the growth agenda of the state.
“Over the past decade policymakers have been reluctant to intervene in cases where delivery of additional housing has been insufficient,” she said.
“Under a red-card model, the next government should identify underperforming councils, and underperforming precincts, and use the existing tools available in the planning system to realise delivery.”
