Property Council NSW Executive Director Katie Stevenson said the reforms - announced in November 2023 - were essential to delivering more diverse housing choices in well-located areas, close to transport, infrastructure and other amenities.
"These reforms are what's needed to tackle NSW's housing shortfall, but the longer they remain stalled, the harder it will be to meet the state's Housing Accord commitment of 377,000 new homes by 2029.
"If the reforms had been activated from 1 July 2024, at least 17,920 homes* should already be in the pipeline. With a longer 18 to 32-month construction timeline, this number rises to 21,333 to 32,000 homes at risk of missing the target."
Ms Stevenson said that, according to the Australian Bureau of Statistics, construction of new townhouses and apartments takes on average between 10 to 32 months, so every month lost narrows the window to get new homes built in time to meet the Housing Accord target.
"The Government says these reforms have the potential to unlock 112,000 new homes during the National Housing Accord, but without immediate action, that opportunity will quickly slip away," Ms Stevenson said.
"Every additional month of delay puts the size of a small suburb - between 2,240 and 4,000 more homes - at risk. To put it in perspective, suburbs such as Arncliffe in Sydney, Thirroul in the Illawarra, and Mayfield in the Hunter each contain between 2,240-4,000 dwellings."
Ms Stevenson urged the NSW Government to prioritise the activation of these reforms so the industry can start delivering the new homes NSW needs.
"The private sector is ready to build, but we need certainty to get projects underway. The clock is ticking and the sooner these planning changes take effect, the sooner we can get shovels in the ground and keys in doors.
"Another month of delay means another suburb's worth of homes is at risk of not being delivered. That's thousands of people left without access to the housing they need," Ms Stevenson said.
