- Total dwelling commencements fell 11.8% this quarter according to the ABS.
- NSW only completed 48,700 homes in the financial year from 2022 to 2023.
- UDIA has made four recommendations to the NSW government.
The ABS’ latest commencement and completions data show a fall in dwelling commencements from the previous quarter, pointing to questionable odds for the successful delivery of the National Housing Accord’s target of 1 million new homes from 2024 to 2029.
Total dwelling commencements fell 11.8% to 40,720 dwellings; new private sector house commencements fell 6.6% to 25,162 dwellings and new private sector and other residential commencements fell 19.6% to 14,529 dwellings.
Number of dwellings commenced, seasonally adjusted
|June qtr 23 no.
|Mar qtr 23 to Jun qtr 23
|June qtr 22 to Jun qtr 23
|New private sector houses
|New private sector other residential
|Total sector total dwellings
The figures for the number of completed dwellings are not much more encouraging, showing a 1.6% slowdown from the previous quarter in new private sector houses, and a 20.1% slowdown in new private sector and other residential completions.
What this means for the National Housing Accord targets
UDIA NSW CEO, Steve Mann, expressed his doubts that NSW could deliver their share for the Accord.
The ABS data also shows that NSW completed only 48,700 new homes in the 2022 to 2023 financial year – the second lowest number of completions for a financial year in NSW over the last eight years.
“With less than 9 months to go to the July 2024 Accord start date, all tiers of government and all parts of industry need to be working full throttle towards the ambitious national target,” he said.
“Today’s data show the scale of the ongoing challenge in NSW as we remain 36% below the 75,600 completed homes needed each year, being our fair share of the National Housing Accord.
“This level has never been achieved in our state and has never been sustained for five years straight.”
Mann said in a housing crisis of this magnitude and with ambitious targets, all housing typologies and tenures in accessible locations should be incentivised across the entire state.
“It is clear that without significant government intervention and close collaboration with the development industry, financiers and constructors, the targets under the National Housing Accord will be a challenge to realise,” he said.
UDIA NSW has made four recommendations to help put the NSW government on course to deliver on the targets.
These recommendations include:
- Allowing greater flexibility through zoning, promoting mixed-use precincts by removing the GCC retain and manage policy, which kills growth in employment lands. Allowing liveable and vibrant place outcomes which include both housing and jobs that increases productivity outcomes and the availability of homes.
- Create a secondary pathway for projects submitted under the State Assessed Planning Proposal (SAPP) but which were not progressed.
- Work with the development industry and the community housing sector to get the Affordable Housing bonus policy settings right and to ensure the policy delivers on the NSW government’s objective to increase the supply of affordable rental housing and market housing in NSW>
- Seek to increase housing in accessible locations near transport nodes and leverage the investment made in existing and future transport infrastructure, including heavy rail and Metro, to create great places which benefit existing and future residents alike.