New figures released by the Australian Bureau of Statistics (ABS) show that housing supply in New South Wales has deteriorated further, with both completions and building commencements sliding in 2024.
The state completed just 45,552 new homes over the calendar year—down from 47,567 in 2023, which was already considered underwhelming.
The number of new builds that got underway also shrank, from 46,331 in 2023 to 42,397 in 2024, signaling a continued slowdown in the construction pipeline, the Property Council reported.
The December quarter saw only 11,564 homes completed, far short of the quarterly benchmark of 19,600 homes needed to stay on track with the federal Housing Accord goals.
“This is now a clear pattern and should be a flashing red light for decision-makers. NSW isn’t just missing its housing targets – it’s drifting further away from them,” said Katie Stevenson (pictured), executive director of the Property Council NSW.
“The data also shows building starts remained sluggish, with just 10,919 commencements – leaving a deepening hole in the future housing pipeline.”
This shortfall is even more concerning in light of long-term targets.
The state needs to deliver around 75,300 new homes annually to meet population growth and ease affordability pressures, according to the NSW Productivity Commission. This aligns with the National Housing Accord’s target of 377,000 homes by mid-2029.
The shrinking supply is contributing to mounting pressure on families and renters alike.
“At this rate, we’re delivering barely 60% of the homes we need,” Stevenson said. “That’s not just a statistic – it means more families and young people priced out, and more renters struggling.”
While the NSW government has made significant strides in policy reform and infrastructure over the past two years, industry groups are now calling on it to tackle the root causes of the housing slowdown.
Stevenson stressed that rising levies, fees, and delays are making new developments harder to finance and deliver.
“Since we launched our ‘Release the Pressure’ series in May last year we’ve seen the evidence grow to confirm what we’ve been saying for years – rising government taxes, charges and fees are making it harder to get projects off the ground,” she said.
“Government can’t keep calling for the delivery of more housing while layering on new costs that make that delivery unviable. We need an honest conversation about how to make housing stack up – otherwise we’ll keep seeing good projects shelved and targets missed.”
