Today, the Australian Bureau of Statistics (ABS) has released housing completions data for the first year of the National Housing Accord, and it reveals that NSW delivered 42,000 new homes. This is 44% below the Housing Accord target for NSW and a 9% decline compared to the previous year.

“At the completion of the first 12 months of the Housing Accord, NSW has delivered its lowest housing completion number in 11 years,” said UDIA NSW CEO, Stuart Ayres.

This shortfall significantly increases the pressure on the remaining years of the Accord period. To meet its total target of 377,000 new homes by mid-2029, NSW must now deliver 83,750 homes annually — an 11% increase on the original yearly target of 75,400.

“This is a bleak start to the Housing Accord period and is a clear signal to all policy makers that more must be done to solve a worsening housing supply crisis in NSW,” Mr Ayres added.

2018 represented the peak of housing completions in NSW at 73,500, comprising:

• 41% detached houses
• 16% medium density typologies (such as townhouses and terraces); and
• 43% apartments

Applied to the Housing Accord targets, year one has fallen short across all housing types.

• Detached Houses underdelivered by 8,200 (-27%)
• Medium Density underdelivered by 2,100 (-17%)
• Apartments underdelivered by 23,100 (-71%)

Table 1: NSW New Residential Completions. Source: UDIA NSW; ABS

*Medium Density refers to semi-detached dwellings (i.e., duplexes), townhouses, row houses, and apartments less than 4 stories.

UDIA NSW welcomes the NSW Government's suite of infill-focused reforms,  including Transport Oriented Development, Low and Mid Rise Housing reforms, the 30% Affordable Housing Bonus and the establishment of the Housing Delivery Authority. However, today's data reveals apartments continue to suffer from a significant feasibility challenge with an annual reduction of 28%.

All housing typologies must perform at, or above, their previous delivery peaks to put NSW back on track to meet its Accord targets.

“NSW must increase its focus on more feasible detached and medium density housing to make up ground against its housing targets,” Mr Ayres said.

“Today's completions numbers emphasise the need for all parliamentarians to support the passage of the Planning System Reforms Bill before the NSW Parliament.”

In addition to legislative changes, to address the housing shortfall, UDIA NSW recommends the following actions:

• Release of the long-awaited Infrastructure Opportunities Plan (IOP), alongside an uncapped Works in Kind (WIK) framework
• Introduction of complying development pathways for land subdivisions
• Encourage the Housing Delivery Authority to focus more on land subdivisions and detached housing
• Enacting local contributions reforms as recommended in our Unlocking Local Contributions in NSW

“In a housing supply crisis our targets must be ambitious, but they are only achievable with coordinated action across all housing types. Government cannot overlook the continued importance and community demand for detached houses and medium density housing,” Mr Ayres said.