New national data has confirmed New South Wales is unlikely to meet its housing supply targets, placing fresh pressure on the upcoming June Budget to accelerate delivery.
The National Housing Supply and Affordability Council released its State of the Housing System 2026 report on Thursday, showing NSW is on track to deliver approximately 258,000 homes – around 69% of its population-based target of 376,000 homes over the Housing Accord period.
The Property Council of NSW responded by calling on the state government to use the Budget to directly address the feasibility challenges weighing on new housing projects.
Property Council NSW executive director Anita Hugo said targets remained important but insufficient without financial and policy backing.
“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,” Hugo said.
The council’s 2026–27 NSW Pre-Budget Submission outlines a series of measures it says could lift housing delivery. These include reducing state taxes, development charges, and government-imposed fees on new housing; funding enabling infrastructure upfront to bring zoned land into delivery sooner; accelerating planning and approvals pathways; and providing greater certainty across the planning and funding system to attract private investment.
The national report, separately, painted a broader picture of a housing system under strain. The National Housing Supply and Affordability Council found that the share of median household income needed to pay rent under a new lease had risen to an all-time high of 33%, while the number of years required to save for a home loan deposit had climbed to 11.2 years.
Council chair Susan Lloyd-Hurwitz said structural reform remained the priority.
“Ensuring that Australia’s housing system provides the amount of housing we require means continuing to focus on improving supply and remaining cautious about introducing any demand side policies which generally only serve to push prices up,” Lloyd-Hurwitz said.
The Property Council also flagged that global economic pressures were compounding local challenges.
“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,” Hugo said.
Hugo said Thursday’s data served as a further warning to stay focused on delivery-oriented policy.
“Today’s data is another caution to keep focused on the measures that are needed, and the June Budget is the opportunity to respond,” she said.
