b'JULY 2020Index: 1980s average = 100, adjusted for ination400350300250200150100501970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020Housing prices Construction costs Rents Household incomeFIGURE 2 - Source: NSW DPIE, A Housing Strategy for NSWFact Book, May 2020, Figure 22, p29.Sources: ABS CPI (Cat 6401.0 Table 9); ABS GDP IPD (Cat 5206.0 Table 5); ABS Census (1971-2016);ABS HH Income (Cat 5206.0 Table 20); CoreLogic; DPIE (index and ination adjustment)State and council led strategic planning has notIn May 2020, the publication of the NSW delivered anticipated housing outcomes, and youngGovernments Housing Strategy highlights the extent new home buyers are literally paying the price ofof the policy failure of Government in this space. supply constraints. Figure 2 highlights the massiveOver the next 20 years, the population of Greater and disproportionate growth in property pricesSydney is forecast to grow by 1 million people, to a compared to household income. total of 7 million people 14 . That means, on average, In May 2016, it was estimated that housing was50,000 new homes will need to be constructed each under supplied by approximately 100,000 dwellings 13 .and every year.In response, the GSC advised that 45,000 newWhat is clear is the size of the task before DPIE. dwellings would need to be produced every year forAs shown in Figure 3 below, never before have 20 years. This was achieved for two years, as projects50,000 homes been produced in one year in Greater approved under Part 3A were delivered and prioritySydneyyet this is the task each and every year planned precincts moved forward. But then in thefor the next 20 years. Between November 2018 face of local community push back, politicians andand November 2019, only 34,765 new homes were Councils turned their focus to strategic planning, andapproved in Greater Sydney 15 . The Strategy does not took the foot off the pedal for housing supply. acknowledge that not all approved housing projects are actually completed. 1313 NSW Department of Treasury, Intergenerational Report, https://www.treasury.nsw.gov.au/nsw-economy/ intergenerational-report, 2016.14 NSW Department of Planning, Industry and Environment, A Housing Strategy for NSW: Discussion Paper, p22.15 Ibid.'