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The Minns Labor government has embraced the Productivity and Equality Commission’s latest report, Review of Housing Supply Challenges and Policy Options for New South Wales.
This report, commissioned by Premier Chris Minns, tasked productivity commissioner Peter Achterstraat with investigating barriers affecting housing supply, particularly within the construction industry.
The review seeks to address obstacles hindering the delivery of various housing types demanded by renters and owner-occupiers. It presents 32 recommendations, organised into four primary themes:
1. Free up construction capacity: Prioritise capital spending, swiftly remove barriers to density in feasible locations, and minimise subsidies for developers.
2. Streamline the development process: Legislate mechanisms to resolve bottlenecks, including those post-DAs approval; retain and improve infrastructure contributions; and create a pro-housing regulatory environment.
3. Support the construction sector: Adjust migration intake and acknowledge worker skills; expand the construction workforce and build capacity; and promote innovation and productivity and;
4. Ensure a diverse and equitable supply of homes.
The NSW government is now reviewing the report and will develop an action plan to implement recommendations, focusing initially on measures that address bottlenecks and enhance housing supply.
This report builds upon earlier critical analyses by the Productivity and Equality Commission, which explored effective density strategies and improved land use.
It underscores the urgency of action, with Achterstraat previously warning: “If we don’t act, we could become a city with no grandchildren.”
The review highlights that between 2016 and 2021, Sydney lost twice as many people aged 30 to 40 as it gained – 35,000 arrived while 70,000 left. Despite Sydney’s high average wages, it has seen a consistent population decline to other states and regional NSW in recent years.
The Minns Labor government has already made significant strides in reforming the NSW planning system. Key initiatives include:
• Establishing fairer housing targets focusing on well-located homes near existing infrastructure.
• Investing $253.7 million to continue the planning system overhaul and reforms.
• Undertaking the largest rezoning in NSW history and investing $5.1 billion to deliver social and affordable housing.
• Launching an international design competition for low-rise and mid-rise housing to expedite pre-approved designs.
• Conducting a land audit of vacant government-owned land to unlock 30,000 homes, including 8,400 public homes.
• Creating a $2.2 billion infrastructure fund to support essential development infrastructure.
The government remains dedicated to addressing the housing crisis by increasing supply with Premier Minns stating: “We won’t back away from the challenge ahead of us – building thousands of new homes near existing infrastructure for a generation of young people locked out of housing.
“The commissioner warned in his last report that we’re at risk of being a city with no young people. Doing nothing is not an option.
“This means honestly assessing the conditions we are working in, and thinking innovatively about what we can do better like this report does. I want to thank commissioner Peter Achterstraat for the work on this report.”
NSW Treasurer Daniel Mookhey added: “As it cites in its foreword, this report is about looking our housing challenge in the face – it is also about practical solutions. We welcome the latest insights from the Productivity and Equality Commissioner and look forward to working through his recommendations.”
NSW Minister for Planning and Public Spaces Paul Scully stated: “The NSW government is confronting the housing crisis head on – and that means making sure we create changes to help increase housing supply.
“We’ve already introduced some of the biggest planning reforms in NSW history and are keen to consider and act on recommendations from important reviews like this from the commission.”
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