Australian Bureau of Statistics (ABS) data shows NSW dwelling approvals declined in June by an appalling 19%.
The 1,597 private houses approved in June is the lowest recorded figure for NSW since January 2013, according to the ABS.
These figures highlight the dire and worsening, housing crisis in NSW:
- Through immigration, the NSW population is increasing by over 15,000 people each month (source: ABS);
- The average growth in the number of properties rented since September 2023 is 218 per month (source: NSW Rental Bonds Board);
- The total number of dwelling units approved in NSW fell by a disastrous 18.8% in June 2024, including a 19% fall in private houses.
For new dwelling approvals to be declining at a time when the housing supply shortage is at a crisis point shows the Government’s approach has created a “perfect storm” and must be reconsidered now, according to the Real Estate Institute of NSW (REINSW).
REINSW CEO Tim McKibbin explained:
“The housing crisis continues to deteriorate on the back of a perfect storm of inhibitive taxation, approval delays and rental reforms which discourage investment
Demand is rising fast and the supply gap is widening at an increasing rate.
These are perfect storm conditions which must be reversed now.
“To do so, a new approach is needed. Government must stop driving investors out of the residential market through anti-landlord reforms.
These reforms reduce rental supply and compound the dire situation for tenants.
“Government must urgently consider property taxation reform.
The cost of new property is inflated by 40% through taxes and charges imposed by various levels of Government.
It’s preventing new supply at a time when we desperately need more homes.
“Delays in development approvals must be eradicated.
Councils which fail to meet their housing quotas should have their planning powers revoked by the NSW Government.
We have run out of time for excuses."
Clearly the housing crisis is not easy to solve.
It is a long-term prospect.
But while there has been a lot of talk about housing and we're lucky to see more as this is an election year, governments can no longer turn a blind eye to the data.
Our housing crisis has taken a long time to develop and is likely to take many years to unravel, meaning rents are going to keep skyrocketing in Sydney property prices are going to keep increasing.
