Less new NSW homes approved in 2024 than year before

Despite ambition plans for fast-tracking new housing approvals near train stations, NSW building approvals slumped 10 per cent last year, putting the Minns government further behind in fixing the housing crisis.

NSW building approvals have slumped 10 per cent while ­national figures also fell below market expectations, putting the Albanese and Minns governments further behind in fixing the housing crisis.

Despite Chris Minns’ bid to accelerate ­developments around transport hubs, 4686 fewer homes received building ­approval in the 12 months to November 30, 2024, compared to the year before.

The latest Australian Bureau of Statistics (ABS) figures, released on Tuesday, suggest that planning reforms are failing to have any impact on increasing housing supply.

NSW is going backwards on dwelling approvals over the 12 months compared to Queensland and Victoria, both of which have higher dwelling approval rates per capita.

There are plans to transform more than 10 hectares of public land near Redfern into one of Sydney’s best-connected train stations, housing and entertainment quarters.

Urban Taskforce chief executive Tom Forrest said the figures show a “chronic trend in the wrong direction” and a “mountain to climb” if NSW is to meet its housing targets of building 75,000 new homes each year until 2029.

Mr Forrest said the uptake of the Minns government’s planning reforms has been “extremely disappointing” with the policy “ruined by detail”.

But in reality, approval rates for new dwellings are dropping.

NSW Opposition housing spokesman Scott Farlow said the figures show the Premier’s reforms have “made the housing crisis worse”, including a hike to property tax rates outlined in last year’s budget.

“The key issue to delivering more homes is cost and Labor has made it worse by putting a $12,000 tax on new homes,” he said.

Nationally, dwelling approvals fell 3.6 per cent in November, coming in at just 14,998, following a 5.2 per cent rise in October.

As part of the Minns Government’s plan to confront the housing crisis, a new master plan for Sydney Olympic Park was put on public exhibition. Picture: NSW Government

New building approvals for private sector houses fell 1.7 per cent to 9028, while private-sector approvals excluding houses fell 10.8 per cent to 5285.

ABS head of construction statistics Daniel Rossi said the fall in dwellings approved in November was across all residential building types.

AMP economist My Bui said national dwelling approvals trended up overall during 2024, but were coming off a low starting point.

“We expect to see the housing shortfall continue throughout this financial year,” Ms Bui said.

NSW Planning Minister Paul Scully conceded there was “more work to do” but said the government had “cautioned that it will take time before our significant reforms deliver the turnaround in housing supply”.

Originally published as Less new NSW homes approved in 2024 than year before