NSW’s 25,000 New Homes: A Game-Changer or Just Political Spin?
The Albanese government recently announced a plan to deliver 25,000 new homes across NSW as part of its broader $32 billion housing strategy. At first glance, this might seem like a win for homebuyers and investors—but is it really solving the housing crisis?
In this deep dive, we break down the numbers, expose the real issues behind the headlines, and explain why buyers need to take matters into their own hands.
The Numbers Don’t Add Up
The government’s $182 million investment is not actually for housing—it’s primarily for infrastructure like roads, sewerage, and water systems. These projects aim to “unlock” land for potential development, but here’s the issue:
NSW needs 100,000+ new homes per year just to keep up with immigration and demand. This plan delivers 5,000 per year—barely 5% of what's needed.
Most of the money is spent on regional infrastructure, while Sydney remains undersupplied.
Private developers are already outpacing the government—for example, Stockland alone is building 28,000 homes this year.
It’s clear: this policy is a PR move, not a real solution.
What’s Really Holding Back Housing Supply?
The issue isn’t just funding—it’s red tape and poor planning. Here’s what’s stopping real housing supply from hitting the market:
Slow Council Approvals – Local councils are backlogged, taking years to approve new developments. The approval system is outdated and inefficient.
Labour Shortages – Government infrastructure projects are pulling skilled workers away from residential construction, causing delays and price hikes.
Lack of Incentives for Developers – Higher costs and excessive regulations make it less profitable to build.
Without addressing these core issues, the housing crisis won’t improve—no matter how many headlines the government releases.
Where Are These Homes Being Built?
Digging deeper into the announcement, we found that over 60% of these new homes are concentrated in just two areas:
Inner West Sydney (Dulwich Hill) – $6.2 million investment to unlock 7,500 new homes
Parramatta – $10.1 million investment unlocking 14,700 new homes
Outside of Sydney, most of the funds are for regional towns, with millions being spent on infrastructure that will supposedly “enable” new homes. But here’s the reality: Infrastructure should be built regardless—linking it to housing numbers is misleading.
What Smart Buyers & Investors Should Do Instead
While the government stalls, the best opportunities in the market are happening elsewhere.
Look at upcoming private developments: Projects like Melrose Park redevelopment in Sydney (11,000 homes)and Guildford Hill in South Australia (44,000 homes) show that private developers are ahead of the curve.
Find high-growth suburbs: Areas with strong population growth, infrastructure spending, and rezoning potential will see higher long-term demand.
Act before prices rise: The housing shortage means prices will keep rising—waiting on government action could mean missing the best deals.
If you’re serious about securing a property in this tight market, you need a clear strategy.
Final Thoughts: The Market Won’t Wait
The government’s housing policy won’t solve the crisis anytime soon—and waiting for them to fix it is a losing game. If you want to stay ahead, you need to take control of your buying strategy now.
We help homebuyers and investors navigate this market, identify real opportunities, and secure properties before they surge in value.
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