Western Sydney Residential Development Overview

1 May 2025

Issue 5

Western Sydney continues to anchor NSW’s population growth, with updated forecasts showing the region will accommodate 56.52% of the state’s growth through to 2041. However, with just 5,404 dwellings currently under construction against an annual need of 24,000, a significant delivery gap persists.

Despite over 39,000 DA-approved dwellings across the region, activation remains the key challenge. Encouragingly, construction costs are moderating, investor lending is rebounding, and new planning reforms are unlocking density potential around transport hubs.

This report explores how policy, infrastructure, and market forces must now converge to convert approvals into urgently needed housing supply.

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