New ABS building approvals data confirmed that NSW is still falling well short of its Housing Accord goals, with just 28,984 dwellings approved across 43 targeted councils in the first nine months of the five-year agreement.
The state would need to be approving 5,366 homes per month to meet its commitments—yet it’s currently averaging just 3,220.
Despite a modest national lift in housing approvals in early 2025, NSW continued to underperform, recording the lowest number of private sector house approvals among major states in March.
According to the Property Council of Australia, just five of the 43 councils assigned targets by the NSW Government are on track to deliver them by 2029: Burwood, Canada Bay, Cessnock, Maitland, and Hawkesbury.
“The ABS data show the 43 councils approved just 28,984 dwellings in the first nine months of the Housing Accord... well short of the 5,366 monthly approvals needed,” said Anita Hugo (pictured), deputy executive director of the Property Council NSW.
Hugo added that 19 councils are currently tracking at 50% or less of their assigned targets, with councils like Lane Cove, North Sydney, City of Sydney, Woollahra, and Strathfield delivering only 6% to 27% of what’s needed.
The shortfall in approvals follows a broader trend: NSW completed only 45,552 new homes in 2024, a decline from 47,567 in 2023, while building commencements dropped to 42,397—down more than 4,000 from the previous year.
“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,” Hugo said.
The Property Council is now urging the government to implement a coordinated package of measures in the upcoming NSW State Budget, including:
“We’ve seen promising reforms, but unless the budget turns those reforms into delivery, we won’t close the gap,” Hugo said.
The NSW government recently introduced LGA-level league tables to assess council performance on approvals, aiming to accelerate delivery through transparency and accountability.
Planning Minister Paul Scully and Housing Minister Rose Jackson will join property leaders at the NSW Housing Summit on June 12 to address housing delivery challenges.
The government’s two-year housing progress update acknowledged major planning system challenges, highlighting ongoing delays and infrastructure bottlenecks as key barriers to delivery.
