Sydney housing crisis on the horizon: 190,000 homes needed over the next decade

SYDNEY is facing a housing crisis with a staggering 190,000 shortfall in homes needed to house the growing population over the next 10 years.

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SYDNEY is facing a housing crisis with a staggering 190,000 shortfall in homes needed to house the growing population over the next 10 years.

An exclusive report obtained by The Daily Telegraph has revealed Sydney councils have failed to approve new dwellings fast enough to meet demand, and were now partly responsible for the sharp rise in up home prices in Sydney.

More alarming was the finding that over the next decade, families would struggle to find anywhere to live, with an estimated shortfall of almost 20,000 homes a year being ­approved at current rates.

The research report commissioned by the Property Council of Australia and based partly on data from the Australian Bureau of Statistics, revealed an average of 17,002 homes have been approved by Sydney’s 43 councils each year for the last 10 years.

But that in itself represented a shortfall of 51,000 homes since 2004, based on long-term government targets.

The Property Council’s Missing the Mark report concedes approval rates have improved in the last three years, assisted by “lower borrowing costs, smarter policy settings and ideal market settings”. But far more homes and higher approval rates are needed to keep pace with projected population growth across the metropolitan region and, on current trend, the city will be 190,000 homes short by 2024, the ­report says.

“Sydney councils need to turbocharge housing supply because right now homebuyers and our economy are paying the price,” NSW Property Council executive director Glenn Byres said. “Home building is critical to the state’s economy — and supports tens of thousands of tradespeople and other workers.

“If we fail to keep pace with demand, we drive up prices and make housing less affordable for the next generation of homebuyers.”

The greatest shortfalls have occurred in central Sydney, the city’s north east, inner west and central west, the Property Council report said.

NSW Planning Minister Pru Goward agreed more homes needed to be built.

“The Greater Sydney Sydney Commission is being ­established to bring local councils together to plan for ­Sydney’s growth,” she said.

“The days of ‘not in my backyard’ have to be behind us. We all need to work together to plan sensibly so Sydney’s newest families can have the roads, parks and daycare centres they need. Sensible urban renewal is the only way we are going to be able to deliver homes near jobs, reduce commute times, and improve access to green space.’’