NSW Housing Completions Lag Behind National Accord Target

The shortfall places NSW about 40 per cent behind the pace needed to meet its five-year commitment. Two years after the state signed the accord, which set an annual target of 75,400 homes through June 2029, supply has remained near 45,000 completions a year.

The state's population reached 8.6 million by December 2025, adding more than 150,000 residents since mid-2024. High interest rates and inflation have made many apartment projects financially unfeasible, particularly in Sydney. Housing starts rose to nearly 53,000 in the 12 months ending December 2025, and approvals reached 52,000 in the year to May, according to the latest Australian Bureau of Statistics quarterly data.

Planning officials attributed part of the gap to statistical rules that exclude certain housing types from completion counts. They noted nearly 80,000 homes are currently under construction and said the figures do not capture student accommodation or residential aged care homes.

A federal Treasury briefing from July 2024 warned that expanding the definition of a dwelling could draw criticism for changing the rules without adding permanent housing. Opposition planning spokesman Chris Rath said the second anniversary of the accord should prompt a review, noting that budget papers no longer include a graph tracking completions.

A spokesman for Treasurer Daniel Mookhey said the text still indicates recent strength in commencements is likely to continue. Urban Taskforce chief executive Tom Forrest said approvals are running at about 70 per cent of the monthly rate required by the accord and called for additional measures to close the gap between approvals and finished homes.