Faced with one of the most unaffordable housing markets on the planet, the NSW government has pledged to pave the way for new dwellings by funding infrastructure and cutting red tape.
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Industry and housing advocates have broadly welcomed the plan - in particular a promise to speed up the planning and approvals process.
The day after NSW Labor's first budget in more than a decade was unveiled, Premier Chris Minns visited a residential development in his own Sydney electorate of Kogarah to spruik the government's approach to housing reform.
The budget included $2.2 billion for spending on housing, of which $1.9 billion will go towards supporting infrastructure such as roads, parks, sewers and schools.
The remaining $300 million is allocated for government land and property development arm, Landcom, to build a planned 4700 new homes, 30 per cent of which will be affordable housing.
Mr Minns says the plan will make money available for infrastructure and remove red tape to open the door for commercial housing developments.
"It means government committing infrastructure to essential parts of metropolitan Sydney in particular, so that we've got the wastewater, public transport and road infrastructure ready to go," he said.
"But more importantly, it means removing some of the red tape so builders in NSW can get going."
Property Council NSW Executive Director Katie Stevenson says the plan lays the foundation for things to improve.
"Industry will be pleased to see a focus on improving planning system efficiency through the Faster Planning Program, including assessing housing supply opportunities across government-owned sites," Ms Stevenson said.
Chair of advocacy group, Business Western Sydney and a former Labor housing minister David Borger said the changes being promised needed to come to fruition sooner rather than later.
"The budget measures ... need to be followed up with major planning system reform to get shovels in the ground and housing delivered for everyone," Mr Borger said.
Opposition leader Mark Speakman says his party is in favour of simplifying planning laws.
"As a general proposition, we want to see red tape removed," he said.
"But we've seen very little from the government so far on that front."
However, opposition housing spokesman Scott Farlow took aim at additional costs on developers under the Housing and Productivity Contribution which it said could add up to $37,000 to the price of a new home.
"The money raised by this contribution isn't tied to the geographic area, with the potential for funds raised from a new development in Penrith paying for a bike path in Petersham," he said.
Housing Minister Rose Jackson says the housing situation in NSW won't be turned around overnight.
"If there was a single bullet, we would put it in the gun and fire it, but the silver bullet does not exist," Ms Jackson said.
"The NSW government is clear - we're stopping the bleeding, we are taking the first steps on the long journey to confront the housing crisis."
Australian Associated Press
