New report investigates barriers to NSW housing supply

Following a request from the New South Wales Premier in June 2024, the Productivity and Equality Commission have conducted an inquiry into the causes of, and potential policy solutions to, the state's housing shortage.

The report, published on 11 September, found several barriers impacting housing supply, including high residential construction and borrowing costs, capacity constraints within the construction industry, and bottlenecks in the development process.

On review of the challenges, the report made 32 recommendations grouped into four distinct themes. The first: to free up construction capacity to build more homes quickly; the second, to streamline the development process and legislate mechanism to resolve bottlenecks, including those arising post-development approval; the third, to provide greater manpower to the construction sector workforce by shifting migration intake and recognising worker skills while also supporting innovation and productivity; and the last, to ensure a diverse and equitable supply of homes.

Commenting on these aspirations in the report's foreword, commissioner Peter Achterstraat stressed the "need to make sure we build housing that's right for people of all incomes, family sizes, and stages of life. We can do this through investments in social housing and smart regulatory changes that make it profitable to build the diverse housing people need."

The new report builds upon the commission's previous research, observing that between 2016 and 2021, Sydney lost twice as many people aged 30 to 40 as it gained. To this point, NSW premier Chris Minns reiterated concerns from commissioner Peter Achterstraat's prior report, warning "that [Sydney's] at risk of being a city with no young people. Doing nothing is not an option."

A statement released from the NSW government noted their intent to develop an action plan identifying the recommendations that could be taken up immediately. Paul Scully, NSW minister for planning and public spaces, said, "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."