30 August, 2025
sydney-councils-challenge-state-housing-plans-with-bold-alternatives

Sydney’s councils are asserting their authority over housing density by rejecting state government-imposed zoning changes. Instead, they are crafting their own housing plans, responding to a government ultimatum: accept a blanket rezoning or propose an alternative that meets the same housing targets.

The New South Wales (NSW) government’s transport-oriented development (TOD) strategy has pressured councils to take action. Inner West Mayor Darcy Byrne has spearheaded efforts to fast-track development assessments, launching a unique version of the government’s Housing Delivery Authority (HDA). This new council initiative aims to ensure that its executives become directly responsible for expediting development applications.

In an unprecedented move, the Inner West Council has proposed its “Fairer Future Plan,” which seeks to deliver over 30,000 new homes. This plan aims to concentrate housing in established suburbs such as Ashfield and Marrickville, providing a localized alternative to the state’s broader TOD zoning. Under this initiative, the council has formed a “Major Residential Development Panel,” which includes the general manager, general counsel, and director of planning. This panel will oversee applications involving five or more new dwellings, streamlining the approval process.

“We want to eliminate the confusion applicants face when navigating our processes,” Byrne stated. He emphasized the need for council officers to report monthly on any delays in applications, ensuring accountability in the housing approval system.

Across the bridge, Mosman Council is looking to develop a similar strategy. Councillors will convene next month to discuss intensifying housing growth around the Spit Junction town centre and the Military Road corridor. Councillor Simon Menzies expressed urgency in creating a plan that meets the state’s housing target of 500 new homes by 2029 while protecting residential zones from indiscriminate rezoning.

Mayor Ann Marie Kimber has reached out to Premier Chris Minns for a meeting to explore the state’s willingness to accept alternative housing strategies. She voiced her disappointment over comments from Minns that characterized Mosman as a “NIMBY” (Not In My Backyard) council. “Many residents support increased density, but they want it implemented thoughtfully rather than through a ‘one size fits all’ approach,” Kimber remarked.

Further north, the Ku-ring-gai Council is nearing a decision on its housing strategy, which targets density in four town centres along the Pacific Highway while preserving low-rise residential neighborhoods. The NSW Department of Planning has recommended that Planning Minister Paul Scully endorse this strategy by November. The department has advised Ku-ring-gai to withdraw its ongoing court challenge against the government’s TOD reforms to avoid further legal costs. However, the council has stated it intends to continue its legal action.

Scully affirmed the government’s commitment to collaborate with councils that present viable housing plans. He underscored the necessity for councils to enhance their assessment timeframes, noting that some are exploring the use of artificial intelligence to improve efficiency. “We’re the second least affordable city in the world and the 859th densest. We need more homes and we need them faster,” he stated.

In a recent address, Minns highlighted the need for a shift in mindset regarding urban density. “Cities like Williamsburg and areas closer to London are much denser than Sydney. People should not perceive Sydney as a dense city,” he asserted.

As Sydney’s councils navigate these challenges, the outcomes of their new approaches will be pivotal in addressing the housing supply crisis while balancing community needs and development goals.