New housing targets in NSW: is it feasible?
The idea behind new housing targets in NSW seemed ambitious when announced—the aim of building 377,000 new homes across the state in just five years.
The new housing targets in NSW see the state government give local councils a specific target number of houses to build with major infrastructure incentives rewarded to those that succeed.
Rather than spread this across the entire state, the New South Wales government targeted key areas where they believed growth and housing demand might succeed.
However, with the cost of living reaching saturation point, the plan set out initially in May all seems like an optimistic push to appease critics. So are the new housing targets in NSW nothing more than a pipedream?
The details of the initiative
Back in May, newly elected New South Wales Premier Chris Minns announced his government’s contribution to the National Housing Accord. This agreement was a pledge signed by state, local and federal government agencies to find new ways to create affordable housing for Australia’s rapidly growing population.
In coming into office, Minns did not waste time setting his vision for housing in New South Wales. The goal was simple – to build 377,000 homes by 2029 across the state. But what was hidden within this plan? Well, the outline was:
- Targeting 43 LGAs for the scheme
- Most targets included Sydney, Greater Newcastle, Illawarra & Central Coast regions
- Only 1 regional LGA was selected – the Shire of Blue Mountains
- Successful councils receive a $200m bonus for local infrastructure projects
On the surface, the plans made sense. Target larger metropolitan areas and help growing cities improve local transport networks or build key amenities like schools & hospitals.
Alongside that, the numbers for each LGA were scaled based on their current population numbers. For example, Sydney CBD needed to build 18,000 new homes for a population of 231,000. Yet the Shire of Blue Mountains needed to build just 600 – for a population of just under 78,500.
The figures weren’t based on population alone; it was also based on several aspects such as:
- Population growth
- Planned development
- Current number of dwellings
- Current regional infrastructure
So with this in mind, what can we expect for some of the targeted regions in this scheme?
New housing targets in NSW stats
Newcastle
Outside of Sydney, Newcastle is the second biggest city in New South Wales. This has meant that it is one of the key beneficiaries of new housing targets in NSW. So what was set:
New Housing Target: 11,110
Current Dwellings: 74,330
Current Population: 174,294
The aims set for the City of Newcastle were some of the biggest announced. Out of all the major CBD regions, only the City of Sydney set higher targets to reach. This comes with Newcastle continuing to grow as a popular commuter base as well as being an economic powerhouse in its own right across the state.
Central Coast
Halfway between Newcastle & Sydney, the Central Coast area has grown to become a hybrid region of growing businesses and a key commuter region. Yet, some of the key targets set here were lower than what some may have anticipated.
New Housing Target: 9,400
Current Dwellings: 152,370
Current Population: 351,934
The targets set here are surprising. Given that Central Coast Council have one of the largest population bases in the chosen regions, the overall target is half that of Newcastle or Sydney CBD. What wasn’t mentioned was the placing of new houses within the area. Whether new sites are chosen in larger towns like Gosford or spread to smaller localities inland has yet to be determined. However, the distribution will need to be carefully placed to maximise the benefits of the scheme.
Maitland
Maitland is cited as one of the fastest-growing towns in Australia. Situated just a short drive from Newcastle, the City of Maitland has grown into a thriving settlement in its own right, With its population expected to soar past 100,000 in coming years, there were some lofty targets set for the region:
New Housing Target: 5,300
Current Dwellings: 36,150
Current Population: 95, 957
With established links to Newcastle, Sydney and even Brisbane, Maitland finds itself as a key new housing target in NSW’s future. Should the drive to hit these benchmarks be successful, the funding increases could be huge to further develop more rail links, expand key road routes and increase more hospitals and schools in this thriving city.
Lake Macquarie
Within the Lower Hunter region, few cities have experienced growth and attention quite like Lake Macquarie. Its elegant waterfront location and strategic positions have seen the town’s population grow tenfold in the past few decades. No wonder then that the NSW Government plans for more growth in the region. This comes with the area being set the following targets:
New Housing Target: 8,000
Current Dwellings: 89,320
Current Population: 219,249
With Lake Macquarie exceeding central Newcastle in terms of both population and dwellings, the revised targets are understandably smaller. Yet this small pocket of the Hunter Valley is expected to grow rapidly as these new government targets are implemented across the state. Just what this means for more of the surrounding areas is yet to be seen though.
FAQ
Will Regional NSW also benefit from the scheme?
Whilst not being included in the new housing targets for NSW, regional councils have not been left out. The government have said they plan to build 55,000 new homes across the state in the same period but have not revealed exactly where these locations might be.
What kind of houses are being built?
No distinct types of homes have been announced by the NSW government at this stage. It has been revealed that a mix of low and mid-density housing will be provided as part of the scheme.
Do local councils have much influence?
As part of the new housing targets in NSW, the state government said they would look to work with LGA authorities on how the housing is built. This would look at strategic plans and public forums to work out how to implement their goals.
Conclusion
In the end, the NSW Government are hoping their newest housing plan will help prospective homeowners find affordable properties to buy. With an ever-growing population, the need for housing has never been higher. Even if the cost of living pushes regular households to the brink of their basic spending. However, this plan shows there could be hope on the horizon and that new housing targets in NSW are achievable throughout the state.
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