Federal funding is needed in NSW

A PEAK industry body is calling on the NSW Government to urgently lobby the Federal Government for funding to build more homes.

The Urban Development Institute of Australia NSW wants the state government to negotiate a housing agreement with the Commonwealth, following Victoria’s announcement of a $2.5 billion funding deal to unlock 66,000 homes.

“NSW is now the only state without a Commonwealth First Home Buyers agreement, despite being 40 per cent behind its National Housing Accord completions target. NSW needs to act,” UDIA NSW chief executive Stuart Ayres said.

Victoria’s agreement includes funding for roads, water, sewerage and other essential infrastructure needed to support new housing, particularly in growth areas where infrastructure costs and delivery constraints can prevent development from proceeding.

“These Commonwealth agreements recognise that investment in enabling infrastructure is critical to unlocking housing supply,” Ayres said.

“NSW cannot afford to waste any more time securing the funding needed to deliver more homes.”

UDIA NSW has already outlined a practical pathway through its Delivering 30,000 Homes for First Home Buyers in NSW report, which calls for a funding agreement of up to $3.6 billion to support the delivery of more than 133,000 homes, including at least 30,000 reserved for first home buyers.

The proposal includes targeted investment in enabling infrastructure across Western Sydney, the Lower Hunter, Central Coast and Illawarra-Shoalhaven, alongside concessional financing for major water infrastructure in Greater Macarthur.

“We have a clear plan to unlock housing supply,” Ayres said.

“Now we need the funding commitment to turn that plan into the homes NSW needs.”