Property Council NSW Executive Director Katie Stevenson said February 2025 Building Approvals data from the Australian Bureau of Statistics (ABS) show just 3,390 homes were approved across NSW - down from 6,062 in January and 4,277 in December.
"We cautioned in March that two months of stronger approvals didn't make a trend, and unfortunately today's numbers confirm that concern.
"It's a serious warning sign. We need to be approving more than 6,250 homes every month to be on track to meet our Housing Accord target - in February, NSW managed just over half that, and every month we fail makes the task ahead even tougher.
"In the 12 months to February, only 45,563 homes were approved - just over 60 per cent of the 75,000 homes needed annually under government targets," she said.
"Quarterly completions remain sluggish, with just 11,220 homes finished in the final quarter of 2024. At the same time, the average apartment is now taking more than 2.5 years to build.
"This is not just a numbers problem - it's a pipeline problem. Delays in approvals, long build times, and rising costs are choking housing supply," she said.
Ms Stevenson said the June Budget was an opportunity to turn the approvals slump around.
"We've seen good reform momentum, but the latest data shows the job is far from done," she said.
"To meet our targets, we need councils and government agencies to move faster and smarter, particularly when it comes to infill housing and apartment approvals.
"We're calling for Budget measures including permanent fast-tracked planning pathways for large-scale residential developments to prevent delays and boost feasibility, and more funding for resources to manage a growing volume of development assessment applications.
"We also need to see ongoing investment in local infrastructure through programs like the Accelerated Infrastructure Fund and Low-Cost Loans Initiative to unlock development-ready land together with serious focus on reform for infrastructure contributions and development taxes.
"The housing crisis needs targeted investment, deeper planning reform, and a development-friendly tax system that supports more housing delivery," Ms Stevenson said.
