How infrastructure delays threaten Western Sydney housing supply
Western Sydney faces growing pressure as infrastructure delays stall housing supply and job access, just as population growth is set to accelerate
Australia’s population is growing rapidly, with the Australian Bureau of Statistics projecting strong increases in urban centres, particularly across New South Wales. The Sydney Metro region is expected to absorb a significant share of this growth, placing further strain on housing and infrastructure in areas beyond the Sydney CBD. As more Australians seek affordable living options, the demand for well-connected, liveable communities outside the city centre continues to rise.
The Department of Planning expects the NSW population to experience continued growth – increasing from 8.1 million in 2021 to 10.07 million in 2041. That's 2 million more people or an average annual growth rate of 1.1% over the next two decades. Meanwhile, Greater Western Sydney is home to 2.5 million people – 35% of whom were born overseas. Its population is projected to reach 3 million by 2036 and absorb two-thirds of Sydney’s total growth, making it one of the fastest-growing urban regions in the country.
This growth is driven by developments such as the new Western Sydney Airport, new metro rail lines, and commercial infrastructure. Yet, housing supply remains a significant challenge. Despite the NSW Government’s plan to add 172,900 new homes by 2029, infrastructure delays continue to stall developments, keeping affordability concerns front and centre in suburbs like Blacktown and Auburn.
Joanna Kubota, Executive Director of The Parks, Sydney's Parkland Councils, spoke at a recent UNSW Western Sydney Connect event, where she emphasised the broader consequences of failing to keep up with demand. Speaking to BusinessThink, she explains the lack of infrastructure investment isn’t just an inconvenience – it’s a roadblock preventing much-needed housing affordability from becoming a reality.
Social infrastructure – not DAs – the real bottleneck
Sydney's North West and South West growth areas – including local government areas like Campbelltown, Penrith, and Liverpool – are under increasing pressure to deliver affordable housing amid rising population forecasts. Yet, despite ambitious rezoning efforts and new precincts mapped across Greater Sydney’s greenfield growth areas, delays in infrastructure projects are stalling progress.
Local communities across these LGAs are calling for better land use planning, improved connectivity, and coordinated initiatives between state and local governments to fast-track community infrastructure like water, electricity, and active transport links. As stakeholders push for zoning reforms and strategic investment in open spaces and town centres, the success of new suburbs such as Austral will hinge on long-term planning and meaningful collaboration across all levels of government.
As Western Sydney continues its economic expansion, pressure is mounting on regional areas like the Western Parkland City to absorb the growing demand for new homes. However, the reality of housing development in these regions paints a starkly different picture – one plagued by infrastructure bottlenecks, uncertainty, and government delays.
Ms Kubota says the housing crisis will worsen without urgent government investment in water, electricity, and public transport. But contrary to what some might say, she argues it’s not development applications (DAs) holding things back.
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“At the moment, both at the state government and federal level, there's a very big focus on housing supply,” Ms Kubota says. “And at times, there's a discussion that one of the biggest hold-ups is delay in DA approvals. That's actually not the case. Well, it's certainly not the case in our part of the world; the DA approvals are not the problem.”
Instead, it’s the absence of essential infrastructure. “The problem is that we do not have the enabling infrastructure in place, and we have no oversight into when that's going to happen,” she says. “In Wollondilly, for example, there has been DAs basically approved, or the indication that there will be approval for some 20,000 lots, and I believe they've only done – the developers chose only to do 5000 – because there's no water and electricity in place, and there's no idea when that's going to come in.”
“At the same time, Penrith LGA has 37% of the employment lands for Greater Sydney, which are zoned for appropriate use and yet nothing can be constructed as the enabling infrastructure is not in place”.
Bipartisan support needed for critical infrastructure investment
Despite some progress, including a recent $1 billion investment allocation towards transport infrastructure to connect Western Sydney communities to the new airport and Bradfield City Centre, gaps remain. Recent federal government funding announcements have also brought cautious optimism.
“The Prime Minister announced that the federal government will put $1 Billion towards securing land in the southern corridor and Leppington, which is a great step forward from our perspective,” Ms Kubota says. “But that funding alone isn’t enough – it’s about making sure the money goes where it’s needed most. There may not be a lot of it, but what’s available should be spent where it truly counts.”
She says the real solution lies in better coordination and long-term planning. “It’s not just that we don’t have it – we don’t know when we’ll get it. There’s no clear timeline, and without that, it’s impossible to plan.”
Photo Gallery: UNSW Business School Event Series – Western Sydney Connect
According to Ms Kubota, bipartisan support is essential. “I think it’s important to understand that both sides of politics have played a role. The city was initially supported by Liberal governments at both the state and federal level – they signed up with the eight councils and were very supportive. Now, with Labor in government at both levels, we’ve still managed to make progress and secure this.”
Western Sydney job growth is hindered by lack of public transport
Beyond achieving housing targets, job creation is another major issue in the region, especially when paired with insufficient transport. “Our biggest challenge is that there aren't enough local jobs. And the ones that do exist are hard to get to. Many in our community still travel east to work – whether it's Parramatta or the city – because that's where the jobs are,” Ms Kubota says.
“As a result, people spend hours commuting, often driving long distances to work or to a station just to access public transport. That daily travel time – two to three hours – takes a toll, especially on health and wellbeing. It also means that our people cannot contribute to community activities, impacting social cohesiveness.”
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She says there’s a need for both job creation and diversity of employment. “Western Sydney is often seen as blue-collar and working-class, and while that’s true for part of the population, more people are moving into the region who are looking for knowledge-intensive and professional services jobs.”
With the ongoing development of Bradfield and the Western Sydney Aerotropolis, opportunities are emerging in advanced manufacturing, aerospace, defence, and even semiconductors. For instance, there’s already an advanced manufacturing readiness facility helping local businesses adopt cutting-edge techniques, creating new skill pathways for residents.
Yet a major issue remains: public transport. Even with the airport underway, access is still a barrier. “Especially for young people without a license or car. We’ve been in forums trying to solve this, but there are still no reliable options for them to get to these jobs. And it’s not just about employment – limited public transport also restricts access to education, and our people deserve more,” concludes Ms Kubota.