THE Lower Hunter is still not keeping up with demand for new housing, new building approvals data shows.
The Australian Bureau of Statistics data also shows that building approvals are not improving and remain well below their peak.
The Lower Hunter residential rental vacancy rate was at 1.1 per cent in March 2024, compared to what the industry considers a healthy target of 3 per cent. The figure indicated insufficient supply of housing to meet the region's needs.
The Urban Development Institute of Australia argues the supply and demand performance measure used by the Department of Planning, Housing and Infrastructure (DPHI) and councils remains too low.
"UDIA analysis of ABS data shows that the Lower Hunter is capable of delivering more housing. In 2020 and 2022, the Lower Hunter saw higher building approvals across apartments and detached houses respectively, demonstrating the region is capable of performing well above current levels," UDIA Hunter Chapter Chair Jeffrey Bretag said.
DPHI has also acknowledged that targets needed to increase to meet NSW government commitments under the National Housing Accord.
Mr Bretag said the institute expected the housing targets for Newcastle, Cessnock, Lake Macquarie, Maitland and Port Stephens to go up.
"But today's ABS figures in the graph below show we are no longer at peak housing performance in the Lower Hunter," he said.
He said the UDIA was working to increase the attractiveness of the Lower Hunter for development investment, and was identifying actions to deliver better housing options when and where they were needed.
