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“Whilst HIA supports the establishment of the HDA, you will not see any keys in doors for several years and it does not address the barriers crippling the housing industry right now”.
“ABS data released yesterday shows that housing approvals continue to decline in NSW with no signs of a recovery in sight. Broader reforms are needed to encourage more detached and medium density residential projects which can be constructed faster.”
“Recent planning reforms announced by the NSW Government including the low and mid-rise housing reforms were supposed to deliver 112,000 homes over 5 years. To date, these reforms have been largely ineffective in delivering any new housing,“ stated Mr Armitage.
“Stage 1 of the reforms permitting dual occupancies and semi-detached homes in the R2 low-density zone introduced last July are not workable because the policy lacks any supporting planning controls. These reforms rely on existing council rules which are too restrictive to enable developments to occur. The Government is also yet to release Stage 2 of the reforms for mid-rise housing around town centres and stations more than 12 months after the policy was originally proposed.”
Planning controls though are just one aspect of the problem. “Right now there are too many obstacles to new housing throughout the development process,“ continued Mr Armitage.
This includes:
“At the current rate there is no way we will build anywhere near the 377,000 new homes required to meet our housing targets. It is time for the NSW Government to get serious and take action to address the current low levels of building activity in NSW” concluded Mr Armitage.
HIA commented on the Explanation of Intended Effect for Standard and model conditions of consent (the EIE). It is understood the EIE explains the proposed amendments to State Environmental Planning Policy 2021 that will give effect to consistent conditions of consent for residential development across the state.
Home building approvals in Tasmania have climbed over the past year, though the numbers remain well below the level needed to meet demand.
The latest building approvals data shows the ACT residential building market remains subdued, with detached housing continuing to struggle and the momentum that emerged in the apartment market during 2025 now showing signs of fading.
“Building approvals for new houses in the month of June 2026 increased to its highest level since August 2021,” stated HIA Chief Economist Tim Reardon