Sydney’s loss is Gunnedah and regional NSW’s gain, according to a report by the Productivity and Equality Commission.
Its latest report, Review of Housing Supply Challenges and Policy Options for New South Wales, was commissioned by NSW Premier Chris Minns who tasked Productivity Commissioner Peter Achterstraat with investigating and providing evidence-based recommendations about the barriers impacting housing supply, including in the construction industry.
The paper found that between 2016 and 2021, Sydney lost twice as many people aged 30 to 40 as it gained. While 35,000 settled in Sydney, 70,000 left. It also found that while Sydney has among the highest average wages in Australia, over recent years it has consistently lost population to other states and regional NSW.
The Commissioner was also asked to investigate barriers which are holding up the delivery of different housing and development types that are sought by renters and owner-occupiers.
The review made 32 recommendations grouped into four key themes:
– Free up construction capacity to build more homes quicky: Prioritise capital spending; rapidly remove barriers to density in the most feasible locations; and be sparing with subsidies for developers.
– Streamline the development process: legislate a mechanism to resolve bottlenecks, including after DAs have been approved; retain and improve infrastructure contributions; and create a pro-housing regulatory environment.
– Help the construction sector to deliver: shift the migration intake and recognise worker skills; grow the construction workforce and build capacity; and support innovation and productivity.
– Ensure a diverse and equitable supply of homes.
Gunnedah Shire Council endorsed its Local Housing Strategy in 2023, providing housing direction for the next 20 years, and the NSW Government is now considering the latest report. It will develop an action plan that will identify which recommendations the government can take up immediately with a priority placed on recommendations that will help unblock bottlenecks and support increased housing supply.
The review builds on critical analysis by the Productivity and Equality Commission in previous housing reports looking into how density can be done well and ideas on better land use.
The latest report provides new insight into why doing nothing is not an option. This follows the Commissioner stating in his last housing review, “If we don’t act, (Sydney) could become a city with no grandchildren.”
