The more than $800 million set aside for social and affordable housing in the NSW state budget falls short of what’s needed to meet demand and properly address homelessness, poverty services say.
Unveiling the state budget on Tuesday, NSW Treasurer Dom Perrottet revealed as the state looks to spends its way out of a COVID-19 recession.
The new social housing package - which the state government says is the biggest in NSW in 20 years - includes $812 million to build more than 1,200 new dwellings and upgrade over 8,000 more. It also includes a specific $212 million for new and upgraded Aboriginal housing.
“We talk about cycles of poverty,” Mr Perrottet said in his budget speech. "This budget sets in motion cycles of security to lift future generations from disadvantage to opportunity.”
Housing Minister Melinda Pavey said the package would also get people into work.
“We’re not just building hundreds of new homes to support disadvantaged and vulnerable people, we’re also creating critically important jobs to support the economic recovery of the state through the construction industry,” she said.
But the St Vincent de Paul Society NSW said the government's announcement was a missed opportunity and would not help fully meet the demand for social housing.
“Access to stable, secure and affordable housing can transform people’s lives,” CEO Jack de Groot said.
“Without a home, it is incredibly difficult for people to find and maintain a job, take care of their health and make plans for the future.”
Mr de Groot said social housing investment is always welcomed and he hoped the NSW package would get the federal government’s attention.
“While we are disappointed this announcement falls short of meeting the level of need in the community, we acknowledge the NSW government’s decision to include funding in the state budget and hope it encourages the federal government to make an investment in social housing so that everyone has access to a safe place to live.”
There are more than 110,000 people currently on the waitlist for social housing in the state, some of whom have waited more than 10 years, St Vincent said.
The NSW announcement comes on the heels of that aims to build 12,000 homes throughout Melbourne and regional areas.

NSW Treasurer Dom Perrottet speaks to the media during a press conference in Sydney,. Source: AAP
Homelessness NSW CEO Katherine McKernan welcomed renewed funding for existing homelessness services but said the NSW social housing package stood in “stark contrast” to the Victorian one.
“If we can’t get significant investment in social housing now, when homes are the answer to beating the pandemic, ending homelessness and providing jobs, then when will we see this?” she said.
NSW has seen homelessness increase by 37 per cent during the pandemic, compared to a national increase of 14 per cent from 2011 - 2016, according to Homelessness NSW.
also estimates there could be some 9,000 new people experiencing homelessness in NSW by June next year.
The NSW Council of Social Service said more work needed to be done to address the "significant housing issues" in the state.
“The government missed a golden opportunity to support more people in desperate need and deliver a much-needed boost to the residential construction industry," CEO Joanna Quilty said.
“Without urgent action and significant investment, what we will see is more individuals and families forced into precarious, inadequate and unsafe situations.”