Sydney housing supply forecast falls to 25,000 new homes per year

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Sydney housing supply forecast falls to 25,000 new homes per year
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Blacktown will grow by almost 18,000 new homes, Hunters Hill is adding 80. See how your area fares

The number of new homes forecast to be built in Greater Sydney in five years has plunged to 128,450, worsening the supply crunch and putting even more pressure on housing affordability.

Overall, completions are forecast to be 25 per cent lower than the preceding five years, which the department says is partly attributable to record high supply from 2017 to 2019. The other major factors it identifies are COVID-19, a market slowdown, fewer approvals, war in Ukraine and land banking by developers .

By contrast, the councils forecast to build the least housing relative to their populations were the Blue Mountains , Mosman and the Northern Beaches , followed by Hunters Hill, Randwick, Fairfield and Woollahra, which were all below 1 per cent.Housing economist Cameron Murray from the University of Sydney said the forecasts looked reasonable, but they only reflected the best guess of future market conditions.

But there is growing opposition within local councils about those incentives, which will allow developers to bypass councils on qualifying projects and seek approval from the Independent Planning Commission or the minister.

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