Accelerated Process for Home Construction Applications in Competitive Housing Market
A commitment to reduce planning times by half for social housing in New South Wales (NSW) could assist the state in reaching its portion of the national home-building targets. The government remains optimistic about achieving these goals despite persistently low approval rates.
To meet the national objective of constructing an additional 1.2 million homes, Australia’s most populous state must provide 377,000 more residences by mid-2029.
On May 31, the NSW government unveiled plans to expedite the processing of planning proposals for social and affordable housing, in combination with existing council-specific housing objectives and incentives.
Prime Minister Albanese emphasized the importance of increasing public housing, community housing, private rentals, and overall housing supply to address the housing crisis.
“Accelerating approvals is crucial,” stated Albanese during a speech outside a renovated social housing property in Sydney. “Our target of 1.2 million homes is ambitious, but achievable.”
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“Rezoning proposals from NSW housing agencies will be expedited through a specialized team within the Department of Planning, Housing and Infrastructure,” announced the government. “The processing times for social and affordable housing developments will be significantly reduced.”
These changes are expected to allow councils to concentrate on local development application reviews. Planning Minister Paul Scully emphasized that all applications must meet specific criteria to align with state and federal housing commitments.
“The newly established team will prioritize social and affordable housing to simplify the application process and provide essential housing for those in need,” stated Scully.
In March, over 57,000 individuals were on the NSW social housing waitlist due to a severe shortage of available public and private dwellings. The restoration of nearly 300 previously uninhabitable social houses was made possible with funding from the federal $2 billion (US$1.3 billion) social housing accelerator fund.
However, the number of new housing approvals remains below the required 75,000 additional homes each year for NSW to meet its five-year target, with fewer than 45,000 homes approved statewide in the year up to April.
Urban Taskforce acting chief Stephen Fenn suggested extending the social housing changes to large-scale private developments. Fenn noted that the private sector must deliver over 95% of the necessary homes under the national agreement, with major projects playing a significant role.
As part of a comprehensive planning reform, the government introduced floor-space and height incentives for developments incorporating at least 15% social housing.
Housing Minister Rose Jackson emphasized the importance of reforming the state’s planning regulations to address the housing crisis effectively.
“We need to hasten the delivery of more social and affordable homes and avoid delays caused by cumbersome planning rules that hinder the provision of homes for those in need,” said Jackson.
