NSW Government Unveils Major Social Housing Reform Package

What’s being announced

The Homes NSW agency has revealed a sweeping 10-year strategy — the Homes for NSW Strategy 2025‑2035 — aimed at overhauling the state’s social housing and homelessness system. Included in the reforms is the Building Homes for NSW program, a more than A$6 billion investment targeted at delivering thousands of new social housing properties, refurbishing existing public housing and boosting support for homelessness.
At the same time, new planning changes and development incentives have been introduced to speed up delivery of social and affordable housing options. The reform package also sets an ambitious target: to raise tenant satisfaction among social housing providers to 75 per cent by 2035.

Why the reforms are needed

NSW is facing mounting pressure in housing supply and social rental sectors: the number of households on the social housing waitlist has grown significantly, while the stock of social housing per capita has declined over recent decades. The government says the existing system is “patchy, outdated and fragmented” — in response, the reforms aim to create a more client-focused, integrated social housing ecosystem.

Key reform elements

1. Expansion of social housing supply

The Building Homes for NSW program will deliver thousands of new social homes, targeting women and children escaping domestic violence, Aboriginal people and families, older Australians, people with disability and young people without family support.

2. Upgrading existing housing stock

A significant allocation is earmarked for refurbishing 30,000 existing homes — improving liveability, energy efficiency and amenity.

3. Planning incentives and reforms

The government has introduced reforms under the State Environmental Planning Policy (Housing) 2021 and other planning instruments to encourage infill social housing, bonuses for affordable housing supply and streamlined assessment pathways for major social housing developments.

4. Tenant-centric system and accountability

Homes NSW has committed to performance targets for satisfaction and better service delivery, signalling a shift toward measuring outcomes, not just stock numbers.

What this means for tenants and the community

For people on social housing waitlists, increased supply offers hope of reduced waiting times. For existing public-housing tenants, refurbishment and upgrades should improve living conditions.
However, some advocates caution that increasing supply alone won’t be enough: issues such as ongoing maintenance, asset transfer to community housing providers and resident rights will need sustained attention.

Challenges ahead

• Scale and speed: Delivering thousands of new homes and refurbishing tens of thousands within a decade will require momentum, funding discipline and coordination across agencies and sectors.
• Maintaining equity: Ensuring the new homes truly serve the most vulnerable — rather than being absorbed into broader “affordable housing” definitions — is crucial.
• Balancing locations: Social housing often needs to be near services, transport and jobs — site-selection and local infrastructure will be key.
• Integration and tenant voice: Critics say that when social housing is managed via community housing providers, tenant rights and recourse should remain protected.

Why it matters

Housing is foundational to wellbeing, opportunity and social inclusion. In a climate of rising rental stress, homelessness and ageing public-housing stock, these reforms mark one of the most significant state-level interventions in recent years. The outcome will influence communities across NSW — urban and regional alike.

Final thought

The NSW Government’s social housing reforms are ambitious, broad-ranging and meant to do more than build homes — they aim to rebuild a system. Whether the promises translate into faster delivery, improved tenant experiences and more secure housing for thousands remains to be seen. But for many Australians waiting for a home, the next decade may bring real change.