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Media Release: Sydney’s Housing Crisis: New Report Finds Over-Regulation and Excessive Taxes are Crippling Housing Delivery
Sydney’s housing affordability crisis is being directly fuelled by excessive government regulation, the highest property taxes in Australia, and complex planning requirements, according to a new research paper released today by Urban Taskforce titled ‘What Makes Housing So Expensive?”
The comprehensive study reveals NSW leads the nation in fees, taxes, and charges on new property development, while simultaneously imposing the most stringent state-based building regulations and design review processes in Australia.
“NSW is effectively taxing itself out of the housing market,” said Tom Forrest, CEO of Urban Taskforce. “There are many drivers of cost in housing supply, and governments have a large role in pushing them up or down
“Productivity in the home building sector in NSW – which is critical to our economy – is catastrophically low.
“Over regulation, and the creation of oversight bodies like the Building Commission all add to the cost of financing a project and the time taken to deliver them, especially when compared to Victoria or Queensland where many of these measures are not in play.
“As a result, we’re watching our best and brightest young professionals move interstate simply because they can’t afford to buy a home here. This isn’t just a housing crisis – it’s becoming an economic crisis.”
Key findings from the research paper include:
- NSW imposes the highest fees, taxes, and charges on new property development in Australia
- Planning and building regulations are more complex in NSW than in any other state
- The current Planning Act fails to mandate housing supply that meets population growth
- Costly design competitions and review processes are adding unnecessary burden to development
- Government spending on major infrastructure projects across Australia has contributed to a shortage of skilled construction workers, which further adds to the cost of housing.
Mr Forrest said while recent initiatives like the Housing Delivery Authority have made progress in reducing planning red tape, local councils continue to face significant hurdles in streamlining housing assessments.
“Both major parties have committed to bipartisan reforms, but we need action now,” Mr Forrest added. “This isn’t a book club meeting – it’s a housing crisis that’s reshaping our state’s future.”
The research paper demonstrates that without significant reform, Sydney risks continuing to lose essential workers – including teachers, nurses, police officers, and aged care workers – again because they can’t afford to live in the communities they serve.
The Urban Taskforce report calls for immediate action in NSW, including:
- Cutting overregulation
- Making housing supply a legislated objective of the planning laws
- Reduction in property taxes and development charges
- Abolition of Stamp Duty
- Streamlining of design review processes.
“The solution is clear: we need to wind back the regulatory rulebook and create housing that meets all price points in all suburbs. Rather than taxing property buyers to fund affordable housing, we should be freeing up planning and design rules to allow the housing marketplace to work effectively,” Mr Forrest said.
End.