Housing strategies are to be prepared by councils for a local government area or district and given effect through amendments to local environmental plans. To deliver coordinated outcomes the development of housing strategies is to be aligned with councils’ community strategic planning and to inform local strategic planning statements and local environmental plans. To address housing supply, housing strategies are to be developed by councils to:
- make provision for the anticipated growth associated with the 0–5 and 6–10 year housing targets (when agreed)
- align projected growth with existing and proposed local infrastructure and open space improvements (refer to Planning Priorities C1, C3 and C17)
- identify the right locations for growth, including areas that are unsuitable for significant change in the short to medium term • identify capacity to contribute to the District’s 20 year strategic housing target
- inform the Affordable Rental Housing Target Schemes for development precincts
- coordinate the planning and delivery of local and State infrastructure.
The NSW Department of Planning and Environment will prepare guidelines to support housing strategies as outlined in A Metropolis of Three Cities (Objective 10).
Table 2 sets five-year housing targets for the Central City District. These are based on the District’s dwelling needs and existing opportunities to deliver supply. They include traditional detached and attached houses, apartments and granny flats.
The five-year targets are generally consistent with known housing approvals and construction activity. These are minimum targets and largely reflect delivery potential under current planning controls.
Table 2: Central City District housing targets by local government area
||0–5 year housing supply target: 2016–2021
|Central City District Total
Each council is to develop 6–10 year housing targets. The 6–10 year housing targets will be developed iteratively through the housing strategy. The strategy is to demonstrate capacity for steady housing supply into the medium term. Principles for housing are set out below and will be expanded on in Guidance Notes by the NSW Department of Planning and Environment.
Meeting housing demand over 20 years requires a longer term outlook. A Metropolis of Three Cities sets a District 20-year strategic housing target of 207,500 dwellings, equating to an average annual supply of 10,375 dwellings over 20 years, or approximately one in four of all new homes in Greater Sydney over the next 20 years. Each council will develop 6–10 year housing targets.
Future Transport 2056 identifies city-shaping transport projects that will, in the long term, improve accessibility to jobs and services, and act as a stimulus for additional housing supply. To deliver the 20-year strategic housing target, councils should, in local housing strategies, investigate and recognise opportunities for long-term housing supply associated with city-shaping transport corridors; growing, emerging and new centres; and other areas with high accessibility.
Housing strategies play an important role in planning for more liveable neighbourhoods and to meet housing demand by responding to the following principles:
- Housing need: the projected housing need and demographic characteristics of the existing and growing community, including different cultural, socio-economic and age groups and the availability of a range of housing types, tenures and price points.
- Diversity: including a mix of dwelling types, a mix of sizes, universal design, seniors and aged care housing, student accommodation, group homes, and boarding houses.
- Market preferences: market demand considerations that drive the take-up of housing, including local housing preferences.
- Alignment of infrastructure: opportunities to optimise transport infrastructure enabling access to jobs, health, education and recreation facilities, that align with State and local government infrastructure priorities (refer to ‘More housing in the right locations’).
- Displacement: managing potential impacts of growth on existing communities such as displacement by understanding the location and volume of affordable rental housing stock.
- Amenity: opportunities that improve amenity including recreation, the public realm, increased walkable and cycle-friendly connections to centres.
- Engagement: engaging the community on a range of options and neighbourhood priorities that can be integrated with new housing and benefit existing and future communities.
- Efficiency: opportunities for innovations in waste management, water and energy provision by determining the nature of growth, location and demand for utilities.
Key technical aspects of preparing a housing strategy to improve housing affordability and choice will be further supported by a new planning circular and guidelines to be prepared by the NSW Department of Planning and Environment.
Key aspects include:
- Capacity: land with potential for rezoning for residential development.
- Viability: the assessment of new areas and whether the capacity created is financially viable for a range of configurations (one, two, three or more bedrooms) and is consistent with market demand and planning controls.
- Good design: buildings that exhibit design excellence in neighbourhoods that are walkable, cycle friendly, connected to transport and services, and have a mix of land uses to support active healthy and socially-connected communities.
- Environment: green infrastructure including biodiversity and waterways, local features (such as topography, heritage and cultural elements, visual impacts, natural hazards such as flooding, special land uses and other environmental constraints) lot sizes, strata ownership and the transition between different built forms.
- Mix: a mix of housing types allows people to relocate within their local area and stay connected to community services, friends and family.
- Supply: land zoned for residential development, served by adequate infrastructure and ready for development projects.
- Affordable rental housing: through housing diversity for those on moderate incomes and affordable rental housing for low and very lowincome households.
- Local character: recognising the distinctive and valued combination of characteristics that contribute to local identity.
- Social housing: more and better access to supported and/or subsidised housing.
- Delivery: the staging of enabling infrastructure, upgrades or expansions of local infrastructure such as schools, open space including sportsgrounds and community facilities.
- Monitoring: homes completed and ready for occupation.
A place-based planning approach to the development of housing strategies will help facilitate high quality urban outcomes including the creation of walkable neighbourhoods which support active and healthy lifestyles, as well as the creation and renewal of great places (refer to Planning Priority C6).
Affordable Rental Housing Targets
Housing has a dual social and economic role across Greater Sydney. Communities require housing that meets changing demographic needs over time and that provides stability. At the same time housing has an economic productivity role by providing housing choice and affordability for a cross-section of workers.
Research and testing of needs through stakeholder and community consultation reaffirms the critical importance of providing a diversity of housing across the housing continuum in Greater Sydney.
Ensuring a steady supply of market housing in locations supported by existing or planned services and amenity with an emphasis on public transport access is outlined in Objective 10 of A Metropolis of Three Cities.
The Affordable Rental Housing State Environmental Planning Policy provides incentives for development projects to include a 10-year term for affordable rental housing dwellings for very low to moderate income households; however, the areas where this is being applied are limited.
A Metropolis of Three Cities includes Affordable Rental Housing Targets for very low to low-income households in Greater Sydney. Affordable Rental Housing Targets that are generally in the range of 5–10 per cent of new residential floor space are subject to viability. A Metropolis of Three Cities identifies the need for further work by the Greater Sydney Commission to support the implementation of the Affordable Rental Housing Targets including consideration of allocation, ownership, management and delivery models.
The NSW Department of Planning and Environment and the Greater Sydney Commission will also jointly investigate ways to facilitate housing diversity through innovative purchase and rental models. This collaboration will also develop mechanisms to deliver the Affordable Rental Housing Targets.
Further opportunities for planning to support housing affordability and diversity measures include:
- more compact housing, either on smaller land lots or through a proportion of smaller apartments of innovative design to support moderate-income households and particularly key workers and skilled workers in targeted employment areas such as health and education precincts
- new owner-developer apartment models that support lower cost and more flexible delivery of apartments for like-minded owner groups.