Minns Government is confronting the housing crisis with bold reforms to create tens of thousands of new, well-located, low and mid-rise homes.

Just last week, the government announced changes that will fast-track a greater diversity of homes like apartment buildings of 3 – 6 storeys, terraces, townhouses, duplexes and smaller 1-2 storey apartment blocks in suburbs where these uses are not permitted.

The reforms create capacity for the industry to deliver an estimated 112,000 new homes across the Greater Sydney region, as well as the Hunter, Central Coast and Illawarra regions.

Currently, each local council has its own rules for what kind of homes can be built in their area. In many local government areas, these rules do not allow the types of homes that NSW needs for the next generation, including housing close to transport and social amenity.

In October 2023, the government identified a significant gap in the approval of density, with terraces and 1–2-unit blocks allowed under R2 zoning in only 2 of 32 LEPs. That’s 6% of the LEPs across Sydney.

R2 is a land use zone which is made up of low-density housing. The ‘missing middle’, as it is being framed by the government, has meant that low rise density has been ignored in the face of a growing housing crisis. Additionally, 60% of R3 zones across Sydney – where townhouses and terraces are appropriate – presently prohibit apartment buildings of any scale.

Details of the proposed density changes include:

• allowing duplexes to be built on all R2 zones across NSW,
• allowing terraces, townhouses and 2-storey apartment blocks near transport hubs and town centres on the R2 zone across Greater Sydney, as well as the Hunter, Central Coast and Illawarra regions, and
• allowing mid-rise apartment blocks near transport hubs and town centres on the R3 zone and appropriate employment zones. This will mean more housing 800 metres from transport hubs, shops and amenities.

In terms of implementation of these changes into the planning system, the government will amend the relevant state environmental planning policy, while simultaneously encouraging councils to add these types of dwellings to their own planning rules. If a local government’s planning rules match or go further this new policy, the State government’s changes will not apply.

How the government will deal with the issues regarding minimum lot size requirements and built form controls remains to be seen.