NSW home approvals crash but 5 council regions are booming

 In September 2024, (NSW) approvals were 23 per cent lower than a year prior.

But there are numerous local government areas (LGAs) within the state that are likely to see a significant uptick in the supply of new homes in the short to medium term.

These are areas where the number of approvals for new homes have been the highest in the 12 months to August 2024.

The Blacktown, Liverpool and the Hills Shire LGAs led in terms of approval numbers for houses in New South Wales. There were 3,714, 3,548 and 3,260 houses approved from September 2023 to August 2024, respectively.

For apartments, the Parramatta, Bayside and Hills Shire LGAs topped the list for new home approvals during the same period, with respective figures of 4,230, 2,040, and 1,942.

The high number of approvals is positive news for these areas as it reflects a strong uplift in housing stock, which is crucial given the country’s current housing shortage.

Higher supply could also lead to more affordable options and improved infrastructure in these areas.

Nationally dwelling approvals in Australia's most populated state have reached their highest level since May 2023. Picture: Getty

According to new data from the Australian Bureau of Statistics, total dwelling approvals increased nationally by 4.4 per cent from August to September 2024 to 14,842, the highest level since May 2023.

This was mainly driven by private dwellings excluding houses, which rose by 4.7 per cent over the month.

In the past year, the total number of homes approved rose by 6.8 per cent with houses making up majority of annual growth.

Approvals for houses were 16.7 per cent higher than September 2023.

Although the number of approvals nationally has been trending upwards since the start of the year, it is still lower than the pre-pandemic average from 2010 to 2019 by 10 per cent.

Strong population growth coupled with prolonged build times for homes has widened the demand and supply gap and exacerbated the housing crisis.

With a national target to build an additional 1.2 million homes by 2030, appropriate policy changes must be made to encourage faster construction timelines.

This article first appeared on realestate.com.au and has been republished with permission.