Skip to main content
NSW Department of Planning, Industry and Environment
  • Share:

We’re increasing housing supply by accelerating rezoning and building infrastructure including roads, schools and utilities that enable development. We will work with councils to provide the right conditions for developers to supply enough new homes in the right areas.


We’re also working closely with councils to ensure our planning preserves and improves the local character of neighbourhoods.


Young family waking past houses


Revised minimum lot sizes

Councils can consider smaller minimum lot sizes when updating their local environmental plans (LEPs) in line with District Plans. Lower land costs from smaller lots as well as smaller homes at lower prices will contribute to more affordable homes.


Expanded Priority Precincts

Fast-tracking delivery and increasing housing supply in new areas identified as Priority Precincts. The expansion of Priority Precincts will deliver an extra 30,000 homes. The precincts will allow for accelerated rezoning, and more diverse developments that will focus on increasing open space and preserving local character.


More housing in the right areas

Guidance for councils to prepare Local Housing Strategies to deliver new and diverse housing to meet District Plan housing targets while protecting the local character of an area.


Smarter, cheaper and more compact apartments

New guidelines will promote smaller, more compact apartments, delivering more affordable homes to the market while ensuring good design outcomes. Other measures being considered include allowing apartments to be sold separately to parking spaces and giving home owners the option to sell a car space.


Speeding up rezoning

A specialist Department team will accelerate council rezonings across NSW. Faster rezoning of greenfield and urban renewal sites will speed up the supply of available homes. An Office of Housing Coordinator is being established which will resolve impediments between councils, the government and home builders.


Faster housing delivery in new release areas

The Greenfield Housing Code will contain simplified development policies for these areas, making it easier for new home construction under the fast-tracked complying development approval pathway. The Code will enable faster and cheaper housing approvals, saving homeowners time and money.


Low-rise housing diversity

The Medium Density Housing Code will allow low-rise medium density housing, such as dual occupancies, manor homes and terraces to be carried out under the fast-tracked complying development approval pathway. This policy will contribute to housing diversity, speed up housing delivery, and save homeowners time and money in the approval process. The Design Guide will promote well-designed medium density housing.


Faster approvals

Measures to help councils speed up approvals will include independent panels for some councils to ensure Development Applications (DAs) are processed efficiently and to ensure the integrity of the planning process.


Streamlining Sydney Planning Panels

In June 2017, NSW Parliament amended the Greater Commission Act 2015 to free up District Commissioners and allow them to focus on the important strategic planning work needed to drive housing targets in their districts. As such, District Commissioners no longer need to chair Sydney Planning Panels responsible for deciding certain development proposals in the Greater Sydney region.


Housing targets for priority councils

Up to $25 million for 10 priority councils identified by the Greater Sydney Commission to help them update local planning rules in their local environment plans (LEPs) within two years. The plans will include appropriate housing targets.


$12.5 million for councils updating local plans

Up to $12.5 million for up to five additional councils that volunteer to update local planning rules their LEPs (Local Environment Plans) within two years. The plans will include appropriate housing targets.


Updating Sydney local environment plans (LEPs)

All Greater Sydney councils to update LEPs within three years with updated housing targets.


Housing supply targets

The Greater Sydney Commission (GSC) to provide housing guidelines for each local council as part of its final District Plans.


Landcom to support housing affordability

A new Statement of Priorities will be issued by the Minister for Planning requiring Landcom to take a larger role in supporting housing supply.


Premier’s Housing Affordability priority

The Premier has made housing affordability a priority, with a goal of increasing home completions to 61,000, on average per financial year to 2020-21. Two targets will help achieve this goal:

  1. Faster housing approvals (90 per cent of approvals determined within 40 days by 2019)
  2. A new target of state-led rezoning for 10,000 dwellings in priority precincts areas per year, on average, to 2020-21.


Using surplus land

Property NSW will identify surplus or underutilised land and areas for sale as development sites. This change will make a direct impact on affordable housing and the private housing market.


Click to enlarge

initiatives increasing housing supply infographic


More information on housing supply:


Page last updated: 05/09/2019