Addressing the Housing Crisis: NSW Government Publishes Housing Approvals Data
In an effort to address the ongoing housing crisis and increase housing supply, the New South Wales (NSW) state government has announced a new initiative to spur competition between councils. The government will now publish data on the number of housing approvals processed in each area and rank them in a league table. This move aims to encourage councils to streamline their approval processes and speed up housing development.
Councils play a vital role in approving residential housing proposals, as they are responsible for approving 85 percent of these proposals in the state. Minister for Planning, Paul Scully, emphasized the importance of tracking these figures, stating, “We are committed to building a better NSW with more homes so young people, families, and workers have somewhere to live.”
To ensure accountability and improvement, consistently underperforming councils will be subject to a Performance Improvement Order. This order will require them to expedite their approval processes. Additionally, the government has introduced new performance standards and monitoring measures. By measuring performance, the state government can effectively monitor progress and make necessary adjustments.
As part of this initiative, Minister Scully released a Statement of Expectations outlining desired timeframes for councils when assessing various proposals. To incentivize councils to meet these expectations, $200 million in financial incentives will be made available. This funding will support local infrastructure projects such as roads, open spaces, and community facilities for growing communities.
Starting from August, time frame expectations for significant development projects will also be published. This will provide transparency and accountability for both councils and the state government. By tracking its own performance, the government aims to ensure that it is actively contributing to the increase in housing supply.
While this initiative has received support from various quarters, including the Minister for Planning, it has also faced criticism. NSW Opposition Leader, Mark Speakman, expressed concerns about diverting funds towards the league table instead of investing in much-needed infrastructure. However, he acknowledged the need to address the housing crisis by increasing density, done in consultation with local communities.
According to the Australian Bureau of Statistics, NSW approved a total of 3,696 new dwellings in May, with over half of these approvals coming from the private sector. While there was a monthly increase of 5.9 percent in private sector approvals and a 2.9 percent increase overall, NSW lagged behind other jurisdictions. It ranked last in terms of overall numbers and significantly behind Western Australia, which saw a nearly 20 percent increase in approvals.
These approval numbers indicate a positive trend, especially considering the dip in approvals that occurred in April, reaching an 11-year low. The 5.5 percent uptick in approvals across the nation in May signals a potential recovery and a step towards addressing the housing crisis.
In conclusion, the NSW government’s decision to publish housing approvals data and rank councils in a league table is a significant step towards improving housing supply. By tracking performance and implementing performance standards, the government aims to expedite housing development and provide more homes for young people, families, and workers. While there are criticisms regarding the allocation of funds, it is clear that addressing the housing crisis requires a multi-faceted approach that focuses on both infrastructure investment and increased density.
