Recent statistics from the Australian Bureau of Statistics have highlighted a concerning drop in building approvals in New South Wales.
In February, only 3,390 homes were approved, a significant decrease from the 6,062 approvals in January and the 4,277 in December.
Katie Stevenson (pictured), executive director of Property Council NSW, expressed alarm at the figures.
“We cautioned in March that two months of stronger approvals didn’t make a trend, and unfortunately today’s numbers confirm that concern,” Stevenson said.
Stevenson emphasised the gravity of the situation, pointing out that to meet the National Housing Accord’s targets, more than 6,250 homes need approval each month.
With just 3,390 homes approved in February, NSW is achieving barely over half the required amount. This shortfall makes future targets even more challenging to reach, with only 45,563 homes approved in the past year—just over 60% of the annual 75,000-home target.
The Property Council previously noted that NSW is expected to miss its National Housing Accord target by 185,000 homes. This shortfall is part of a wider issue, with Australia overall failing to meet housing demands relative to its population growth.
In the 2024 financial year, the country built 62,000 fewer homes than necessary, with NSW accounting for a substantial portion of this deficit, PropTrack reported.
The problems extend beyond mere numbers. Stevenson highlighted systemic issues in the housing development process.
“Quarterly completions remain sluggish, with just 11,220 homes finished in the final quarter of 2024,” she said. “At the same time, the average apartment is now taking more than 2.5 years to build.
“This is not just a numbers problem—it’s a pipeline problem. Delays in approvals, long build times, and rising costs are choking housing supply.”
With the June budget on the horizon, Stevenson sees an opportunity for significant reforms to address these challenges.
She advocates for faster and more efficient processing of infill housing and apartment approvals and calls for budget measures to streamline planning pathways for large-scale residential developments.
Additionally, she suggested increasing funding to handle the rising volume of development assessment applications and investing in local infrastructure through initiatives like the Accelerated Infrastructure Fund and Low-Cost Loans Initiative.
Stevenson concluded that the housing crisis demands targeted investment, deeper planning reform, and a tax system conducive to development.
“The housing crisis needs targeted investment, deeper planning reform, and a development-friendly tax system that supports more housing delivery," she said.
