Property Council NSW Executive Director Anita Hugo said while targets are still ambitious, policy and funding decisions, including measures in the June Budget, should be aimed at closing the gap.
"Clear housing targets play a key role - they focus effort, guide investment and create accountability, but the gap will only close with support for feasibility and supply," Ms Hugo said.
The State of the Housing System 2026, released today by the National Housing Supply and Affordability Council, shows NSW is currently tracking to deliver around 69 per cent of its population-based housing target, with approximately 258,000 homes expected to be delivered against a target of around 376,000 homes over the Housing Accord period.
The Property Council said its 2026‑27 NSW Pre‑Budget Submission outlines a clear agenda that could lift housing delivery, particularly by addressing the taxes, fees and charges currently weighing down new projects.
The Property Council is calling on the NSW Government to use the Budget to help improve the feasibility challenge by reducing the cost burden on new housing and funding enabling infrastructure so more homes can be delivered sooner. Recommended measures include:
- Reducing the cost of building new housing, including state taxes, development charges and government‑imposed fees that directly affect feasibility
- Funding enabling infrastructure upfront, so housing‑zoned land can move into delivery sooner
- Implementation of accelerated planning and approvals pathways
- Providing certainty and consistency across the planning and funding system to unlock more private investment.
"Global issues are further increasing costs and adding uncertainty to the building equation, so we need to ensure that industry and government continue working together to get projects across the line.
The Property Council reaffirmed its support for a clear, long-term housing target for NSW, backed by Budget measures that actively support delivery.
"Today's data is another caution to keep focused on the measures that are needed, and the June Budget is the opportunity to respond," Ms Hugo said.
