NSW’s Record Investment in Social Housing to Build 30,000 New Homes

New South Wales (NSW) is set to embark on a significant endeavor with a record-breaking investment in social housing, aiming to construct 30,000 new homes across the state. The Labor-led administration, spearheaded by Treasurer Daniel Mookhey, has earmarked $5.1 billion for the initiative, which includes the construction of 8,400 new and refurbished social homes, with a strategic focus on assisting women and children fleeing domestic violence situations.

The 2024-25 budget unveiled by the NSW government reveals a $3.6 billion deficit, a substantial portion of which is attributed to an $11.9 billion reduction in Goods and Services Tax (GST) revenue, underscoring the financial challenges facing the region. Despite this, the government remains committed to its social housing objectives by introducing various housing schemes tailored to address the pressing needs of residents.

The housing measures announced are designed to facilitate easier access to the Sydney housing market, with a pivot towards enhancing the availability of new homes for a diverse range of individuals, including renters, essential workers, and those seeking refuge from volatile domestic environments.

Minister Mookhey emphasized that the social housing program will yield a total of 8,400 new social housing units, with 6,200 being entirely new constructions and the remainder encompassing the redevelopment of existing social homes. Notable is the allocation of half of these new dwellings for women and children escaping domestic violence situations, aiming to mitigate the dire circumstances many face in such instances.

In conjunction with the creation of new social housing units, an audit has identified 44 government-owned sites suitable for development, with plans to sell these sites to entities such as Housing NSW, Landcom, and private developers. This initiative is projected to yield an additional 21,000 new homes, further contributing to the overall goal of enhancing housing availability and affordability in NSW.

As part of the comprehensive budget, substantial amounts have been allocated to support key occupational groups, including a commitment of $450 million for essential workers through a build-to-rent program managed by Landcom. Additional funding of $200 million has been designated for essential worker accommodations in regional areas, addressing the housing needs of professionals outside metropolitan Sydney.

The budget also caters to healthcare concerns, notably introducing a $189 million injection into bulk-billing services to incentivize General Practitioners (GPs) to continue offering these services. The measures aim to counteract declining bulk-billing rates identified in recent surveys and ensure continued access to healthcare for NSW residents.

In light of a significant reduction in GST revenue, attributed to decisions made by the Commonwealth Grants Commission, Treasurer Mookhey highlighted the state’s commitment to avoiding austerity measures. The government anticipates a soft landing from the financial challenges, with projections indicating a slight increase in unemployment rates and an anticipated decline in interest rates by mid-2025.