Sydney s housing deficit shortfall to rise to 190 000

Sydney’s housing deficit shortfall to rise to 190,000Sydney is facing a housing deficit that will rise by 190,000 unless local councils accelerate the number of new approvals, according to a new report.The research was commissioned by the Property Council of Australia – whose members include major investors and developers of substantial new residential projects.The report shows that by 2024, the number of homes needed to keep pace with population growth will have fallen short by over 190,000.”Sydney councils need to turbocharge housing supply because right now homebuyers and our economy are paying the price,” NSW Executive Director Glenn Byres said today.”Home building is critical to the State’s economy – and supports tens of thousands of tradespeople and other workers.”And if we fail to keep pace with demand, we drive up prices and make housing less affordable for the next generation of homebuyers.”Councils need to get on with the job of issuing approvals, delivering the housing required to keep pace with population growth and a better planning system is essential.”The report audited individual councils across Sydney and showed that:In the first decade since housing targets were set for councils, they have collectively come up over 51,000 homes short – or 23 percentAnnual approvals over the past decade averaged 17002 – against a target of 22,178Against population growth, the annual shortfall increased to 5632 – or 56320 over the decadePopulation projections show Sydney will need to produce 31,076 new homes each year – but based on the current rate of approvals, the annual shortfall is 14,073Even in the favourable market over the past three years, Sydney has averaged 23,3 approvals per yearOnly five councils in Sydney are currently issuing enough approvals to keep pace with projected population growth.Mr Byres said the report showed we need to overhaul the housing approvals process to deliver additional supply.”Even in an era of record low interest rates, a strong NSW economy and pent up demand, we’re producing about 8000 homes a year less than we’re going to need,” Mr Byres said.”So far, we’ve lacked the volume and type of sites needed for new housing – and that is in both existing areas where urban renewal can occur, as well as greenfield housing.”A big priority needs to make sure more areas are available for urban renewal – along transport corridors, old industrial lands, town centres and other priority areas.”We also need to make rezonings quicker, so where there are opportunities to generate new housing, they are not stuck in the system for years on end.”NSW also needs a new planning system that replaces the current system where red tape and crazy rules act to slow or block projects.”Media contact: Glenn Byres, NSW Executive Director, 0419 695 435.