Warning fails to move the dial on new builds as councils fall behind on housing targets

New analysis shows NSW will fall more than 40 per cent short of its National Housing Accord commitment at the current pace of new housing approvals.

Only six of the 43 councils tasked with targets to deliver more homes are on track to meet them, despite the Minns government’s warnings that councils delaying the approvals of new homes will be punished.

New analysis by the Property Council of Australia of the latest Australian Bureau of Statistics data shows that the state will fall more than 40 per cent short of its National Housing Accord commitments of 322,000 homes in Greater Sydney by 2029, based on the current pace of new housing approvals.

The ABS data showed that more than 15,330 new dwellings were approved from the 2024/25 financial year to date, which represents progress of almost five per cent. This falls well short of the 5,366 monthly approvals needed to meet the Housing Accord target.

Leafy inner city suburbs were the worst offenders with North Sydney on track to meet only seven per cent of its housing target, while Lane Cove only approved 18 dwellings putting it at risk of only meeting six per cent of its total targets. Burwood is also failing to approve more homes and is on track to meet only 11 per cent of its housing target.

Parramatta is the only metropolitan council on track to meet its housing target. Picture: NCA NewsWire / David Swift

Of all 43 councils, Parramatta and Canada Bay were the only councils in metropolitan Sydney that was on track to meet 100 per cent of its housing targets, after approving 1620 and 686 new dwellings respectively since the financial year. Even Blacktown, which approved 1,358 new dwellings in five months is only likely to meet 76 per cent of its targets based on its current performance.

This comes after The Daily Telegraph revealed in December that multiple Sydney councils had been given a “four to six-month” deadline to pick up their game in order to avoid sanctions,

Planning Minister Paul Scully has repeatedly threatened underperforming councils with intervention, including a “planning improvement order”, which would be imposed by the Local Government Minister.

Despite hope that the government’s new Housing Delivery Body, designed to fast track major developments will speed up approvals, a spokesperson for Mr Scully said the numbers would take time to pick up.

“The NSW Government has consistently cautioned that it will take time before our significant reforms deliver the turnaround in housing supply families and young people need,” the spokesperson said.

Property Council of Australia executive director Katie Stevenson said the data showed multiple councils are on track to deliver only 15 per cent or less of their housing targets.

NSW Property Council executive director Katie Stevenson in Zetland. Photo Jeremy Piper

“We’re already six months into the five-year Housing Accord period, and with a full suite of reforms now in place the next six months needs to see councils and the new Housing Delivery Authority shift into high gear and get on with the job of delivering more homes,” she said.

Blacktown mayor Brad Bunting, said while the council planners were working to approve as many new homes as possible it would be nearly impossible to reach the targets without more supporting public infrastructure such as parks, schools and roads.

“We do our best to do whatever we can and we take on board what the government asks of us,” he said.

“It will be extremely difficult for us to meet all our housing targets if we don’t have more public infrastructure to support the growing community.”

Originally published as Warning fails to move the dial on new builds as councils fall behind on housing targets