North Sydney Council lags behind in meeting housing targets

12 March 2025

North Sydney Council has significantly underperformed in meeting state-mandated housing targets, according to findings from pro-housing advocacy group Sydney YIMBY. The council has approved just 68 homes annually against a target of 1,180—placing it among the worst-performing councils in Greater Sydney, according to an analysis from the group.

The NSW government set ambitious housing targets in May 2024, aiming for 75,000 new dwellings per year across the state. However, in the first six months of implementation (July-December 2024), approvals were tracking at an annualised rate of just 45,000 homes—far short of the objective.

Sydney YIMBY said its data highlights North Sydney Council’s persistent failure to meet previous and current targets. Between 2021 and 2024, it approved only 27% of the homes required under the Greater Sydney Commission’s targets. Its current performance remains well below expectations, with an approval rate of just 6% of its assigned goal.

Other councils have also fallen short. Sydney Council, responsible for 3,780 homes annually, has been approving them at a rate of just 456 per year. Lane Cove Council has approved only 36 homes in the past six months against an annual target of 680, though it had a higher approval rate in preceding months.

The broader picture across Greater Sydney shows varying performance. Some councils, such as Burwood and Canada Bay, have exceeded targets, while others—including Inner West (13%), Strathfield (13%), and Sydney (12%)—are among the worst performers.

Sydney YIMBY has argued that councils need stronger accountability mechanisms. The group has suggested that persistent underperformance should lead to intervention, such as regional planning panels considering approval delays in their decisions. More stringent measures, including automatic upzoning and non-refusal provisions, could be introduced if councils continue to miss targets.

NSW planning minister Paul Scully has already signalled the need for intervention, recently directing six councils—including North Sydney—to improve their housing approval processes. According to a report in The Daily Telegraph, Scully has given these councils three months to improve their approval rates or risk losing their assessment powers. He has warned that failure to comply could result in the imposition of a Performance Improvement Order, which could escalate to the appointment of a planning administrator or a regional planning panel taking over approvals.

North Sydney Council, which currently takes an average of 154 days to assess development applications, has stated that it is implementing “improvement strategies” to speed up approvals.