NSW election heating up as housing plans clash, with major parties proposing competing strategies to address Sydney’s crisis
Housing affordability is shaping up as a major battleground ahead of the NSW election in March, with rival parties offering competing visions for how Sydney can make room for a growing population.
At the centre of the debate is Sydney’s eastern suburbs, where proposals to unlock land and expand transport infrastructure have exposed divisions over how the state should tackle its housing shortage.
The Coalition has proposed closing Long Bay Correctional Facility and transforming its 50 hectare site into more than 12,000 homes if elected.
Opposition Leader Kellie Sloane says the coastal site should be used to address housing demand, with almost one third of the proposed homes earmarked for affordable and social housing.
To compensate for the prison’s closure, which would remove around 1,200 beds from the correctional system, Sloane has suggested expanding other facilities, including Goulburn jail.
The proposal puts underused or strategically located land at the centre of the housing debate, while raising questions about how the state would manage prison capacity alongside new development.
NSW Labor has rejected the Coalition’s approach, instead backing a new rail stop at Woollahra to support the development of around 9,400 homes nearby.
The competing plans highlight a broader disagreement over how Sydney should grow, with one focusing on repurposing existing land and the other linking new housing to public transport infrastructure.
Housing targets under scrutiny
The debate comes as NSW continues to face pressure to deliver more homes and keep pace with national housing targets.
Planning reform has already featured prominently in the state’s housing agenda, with former Liberal leader Mark Speakman previously advocating a “YIMBY” approach aimed at accelerating approvals and encouraging development.
The government is also pursuing rezoning across more than 70 areas, particularly around transport hubs, as it seeks to increase housing supply.
Planning Minister Paul Scully has challenged Sloane to clarify her position on recent urban development proposals as public consultation periods draw to a close.
Beyond the major parties, the Greens are calling for greater investment in public and social housing, alongside affordable housing targets for state and local governments.
With housing costs continuing to put pressure on younger Australians and prospective buyers, the election campaign is likely to sharpen the debate over not just how many homes NSW needs, but where they should be built and who will be able to afford them.
