Tax concessions in Australia's most expensive property market have been broadly welcomed as leaders are urged not to forget community housing.
Units built to rent in NSW will have large tax concessions extended indefinitely to encourage developers to boost rental stock.
Tuesday's state budget will continue the concessions "indefinitely" rather than ending in 2039, in a push to provide long-term certainty for investors and boost supply of high-quality rentals.
Any move to speed up increases to supply was welcome, NSW Council of Social Service chief executive Cara Varian said.
But an investment in community housing providers to deliver social homes must follow, she said.
"While increasing private rental stock is welcome, we already know these homes will be unaffordable and unattainable for tens of thousands of people in housing stress, or the 65,000 people on the social housing wait list," she told AAP.
"The housing and rental crisis in NSW is at breaking point, and continues to trap lower-income earners in cycles of disadvantage."
Outlining the plan on Thursday, Premier Chris Minns said it was not a case of choosing one type of housing over another.
"Every additional house we put available in the rental market frees up additional housing for someone else to buy in the other part of the property market as well," he said.
"We need more homes for people to rent, we need more homes for people to own, and we need more social and affordable housing as well."
Plans are in motion to boost density in Sydney, where the median dwelling value is the highest of the nation's capital cities.
Concessions for build-to-rent properties, introduced by the previous coalition government, halve the assessed land value of the property for tax purposes.
The Property Council, which lobbied for the change, said the "constructive" move showed the government was both listening and acting.
"Making the exemption permanent provides long-term certainty to investors and developers, helping to enable more high-quality rental homes to be delivered across NSW," NSW executive director Katie Stevenson said.
New guidelines for "works-in-kind" developments will aim to speed up housing-associated infrastructure delivery.
The agreements allow developers to build roads or provide land for schools and hospitals rather than paying for the state to do it.
Other plans to boost housing including rezoning, 30,000 new homes on surplus government land and a new state authority allowing major housing projects to bypass local council planning controls.
A national plan to deliver 1.2 million new homes across Australia by mid-2029 requires NSW to build 377,000 new homes.
The state is building far below the required rate.
