Rezoning Could Create 70,000 Homes in New South Wales

People look at a signboard of a property for sale in Sydney, Australia, on May 5, 2022. (Brendon Thorne/Getty Images)

Up to 70,000 new homes could be built in Australia’s most populated state New South Wales (NSW) as new areas are rezoned, with the NSW premier saying he’s “throwing everything at getting more houses built” as the cost of living continues to bite.

“Working with councils, rezoning is one important lever that we are pulling to get the ball rolling on more housing supply across our state,” Premier Dominic Perrottet said on Monday.

“We are throwing everything at getting more houses built so more people get keys in doors and can realise their dream of owning a home.”

Through the $73.5 million Rezoning Pathways Program, ten areas will be rezoned, including Riverstone, Camellia-Rosehill, Macquarie Park, Explorer St in Eveleigh, two sites in Parramatta, and one site in Broadmeadow in Newcastle.

Planning and Homes Minister Anthony Roberts says accelerating rezoning programs will make more areas development-ready for new homes.

New housing is being built at North Lakes in Brisbane, Australia, on June 10, 2016 . (Glenn Hunt/Getty Images)

“We’re creating a pipeline for tens of thousands more homes, giving more people in NSW the opportunity to put a roof over their heads.”

The program is part of the state government’s $2.8 billion housing package announced in the budget, which included stamp duty reform for first-home buyers.

It also comes on the back of the latest Rental Affordability Index, which showed renting has become less affordable in Sydney over the last year and has steadily risen since the COVID-19 pandemic.

Earlier this month, the government announced it would assume responsibility for three planning proposals across the Macarthur Region, saying their approval could lead to the construction of 19,000 new homes as well as providing koala corridors.

“This is all about accelerating the rezoning of key housing areas to make more land development-ready for new homes,” Mr Roberts said.

While planning proposals are usually assessed by local councils, this program gives the government the ability to make assessments and lead rezoning work on planning proposals it deems significant.

A pilot is underway for developers proposing projects offering more than 1000 homes in metropolitan areas and more than 300 homes in regional areas.