Debate erupts as NSW falls short of housing approvals target

New figures have revealed the extent of NSW’s housing supply struggles and reignited debate among politicians and industry leaders around reforms to the housing approval process.

Housing approvals in NSW increased by 30 per cent in September, according to new data from the ABS.

Despite 4,800 new dwellings being approved over the month, the state remains significantly behind its National Housing Accord target of 75,000 new homes for the year.

According to ABS data, 40,449 dwellings were approved from January to September 2025, or 53.93 per cent of the annual target.

NSW is falling short of its housing approval targets. Picture: NCA NewsWire/Gaye Gerard.

Property Council NSW executive director Anita Hugo said housing approvals were “only the first step in the pipeline for completed homes”.

The new figures have heated up discussions around The Environmental Planning and Assessment Amendment (Planning System Reforms) Bill 2025, which is set to be presented before Parliament next week.

Ms Hugo said under the Bill, a new Development Coordination Authority would centralise agency referrals and approvals, the Housing Delivery Authority would be enshrined in law and a Targeted Assessment Pathway would be introduced for straightforward applications.

“This Bill addresses the system’s biggest pain points – long delays, inconsistent decisions, and a lack of clear co-ordination,” she said.

“This is not the time for delay – the Bill before Parliament next week is the circuit-breaker NSW needs.”

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The Minns Government has proposed major reforms to the housing approval process. Photo: NewsWire/Gaye Gerard.

Ms Hugo said the reforms would help “clear the backlog” and fast-track projects.

“The choice before Parliament next week is simple,” she said, “act now or accept that housing supply will continue to fall short and affordability will worsen.”

New ABS figures also revealed the increasing costs of building new homes.

Master Builders NSW executive director Matthew Pollock said the industry was facing “increased cost pressures on the construction of apartments and non-residential construction.”

“On average, input costs into apartments jumped by 3.8 per cent over the year to September 2025,” he said.

“Rising costs are continuing to place pressure on the feasibility of projects, particularly high-rise residential developments which combined with building completion times of over three years pose a too often insurmountable challenge to getting these projects out of the ground.”

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Master Builders NSW executive director Matthew Pollock. Picture: Chris Kidd.

Mr Pollock said the Minns Government’s proposed planning reforms, which are currently being blocked by the Greens, will cut red tape and speed up the pace of housing construction if passed by Parliament.

“Master Builders call on the Greens to be builders not blockers and pass these vital planning system changes when the NSW Parliament resumes sitting next week.”

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ABS figures have also revealed increases in the costs of building apartments. Picture: Brendon Thorne/Bloomberg via Getty Images.

In an October statement, Greens MP Sue Higginson called the Bill “the most dangerous change to our planning system we have ever seen,” describing it as “a developer’s charter”.

“It will open the door for damaging projects to be forced onto communities, strip out safeguards for biodiversity and climate, and put people at greater risk from fire and unsafe development,” she said.

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Greens MP Sue Higginson has staunchly opposed the latest proposal to reform the Bill. Picture: NewsWire/Gaye Gerard.

According to Ms Higginson, the Bill removes the requirement for bushfire hazard assessments, which she said “leaves communities more vulnerable at a time when fire risk is intensifying across NSW”.

Ms Higginson said the Bill “undermined the protection of First Nations cultural heritage”.

“By funnelling approvals into the Development Coordination Authority, expert advice from Heritage NSW and the voices of Land Councils and Native Title holders will no longer be guaranteed a statutory role in decision-making,” she said.

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