Understanding the Low and Mid-Rise Housing Policy in NSW

The Low and Mid-Rise Housing Policy is a major urban planning reform introduced by the NSW Labor Government to increase housing supply and improve housing affordability in New South Wales (NSW).

The policy will be implemented in two stages and aims to deliver up to 112,000 new homes over the next five years by expanding low and mid-rise housing options near transport hubs and town centres.

This guide explains:

✔ What low and mid-rise housing is

✔ How the policy changes existing planning controls

✔ Where these housing changes will be implemented

✔ Who benefits from these reforms

What is Low and Mid-Rise Housing? 🏠

1. Low-Rise Housing

🔹 Definition: Low-rise housing generally refers to 1–2 storey developments that provide higher-density living while maintaining a suburban character.

🔹 Examples:

✔ Dual occupancies (two dwellings on the same lot)

✔ Terraces

✔ Townhouses

✔ Low-rise apartment buildings (up to 2 storeys)

2. Mid-Rise Housing

🔹 Definition: Mid-rise housing typically includes 3–6 storey residential buildings, bridging the gap between low-density detached homes and high-rise apartments.

🔹 Examples:

✔ Mid-rise apartment buildings (3–6 storeys)

✔ Shop-top housing (residential apartments above commercial premises)

📊 According to the NSW Department of Planning, only two out of 33 councils in Greater Sydney currently allow terraces and townhouses in R2 low-density zones, limiting housing diversity.

How the Low and Mid-Rise Housing Policy is Changing NSW Planning Laws

Over the past few decades, NSW councils have heavily restricted low and mid-rise housing in favour of either high-rise apartments or detached houses. This has contributed to a housing supply shortage and rising prices.

The Low and Mid-Rise Housing Policy, embedded in the State Environmental Planning Policy (Housing) 2021, introduces major zoning changes to allow missing middle housing types in well-connected areas.

🔹 Key Changes Under the Policy:

✔ Dual occupancies, terraces, townhouses, and apartments will be permitted in R1 and R2 residential zones.

✔ Medium-rise apartment buildings will be allowed in R3 and R4 residential zones.

✔ These developments must be located within 800m (a 10-minute walk) of transport hubs, town centres, or major shopping precincts.

📊 The policy aligns with the National Housing Accord’s target of building 1.2 million homes by 2029, of which NSW is expected to contribute a significant share.

Stages of the NSW Low and Mid-Rise Housing Policy

📌 Stage 1: Permitting Dual Occupancies (From 1 July 2024)

The first stage of the policy introduced dual occupancies and semi-detached dwellings in the R2 low-density residential zone across all of NSW.

🔹 Impacts of Stage 1:

✔ More affordable housing options for homeowners looking to build an additional dwelling.

✔ Allows property investors to create dual-income properties on a single lot.

✔ Reduces urban sprawl by increasing density in existing suburbs.

📌 Stage 2: Encouraging Low and Mid-Rise Housing (From 28 February 2025)

The second stage expands planning controls to permit terraces, townhouses, apartments, and shop-top housing in designated low and mid-rise housing areas across Greater Sydney, the Central Coast, Lower Hunter, Newcastle, and Illawarra-Shoalhaven.

🔹 Where Will These Changes Apply?

✔ 171 town centres and train/light rail stations

✔ Within 800 metres of transport hubs and shopping precincts

✔ View the map of low and mid-rise housing areas here

📊 Urban planners estimate that by expanding medium-density housing, NSW could reduce housing shortages by 15–20% within five years.

How Housing Areas Were Selected for the Reforms

The NSW Government used extensive data and public feedback to determine the best locations for low and mid-rise housing expansion.

🔹 Site Selection Criteria:

✔ Access to Essential Goods & Services – Locations with supermarkets, shops, and community services.

✔ Public Transport Accessibility – Areas with frequent train, light rail, metro, and bus services.

✔ Travel Times – Proximity to major job centres (e.g., Sydney CBD, Parramatta, Newcastle).

✔ Infrastructure Capacity – Consideration of water, sewer, roads, and public transport networks.

✔ Hazard & Constraints – Areas with high flood or bushfire risk were excluded.

📊 Research by the Urban Development Institute of Australia (UDIA) shows that transit-oriented development can reduce car dependency by up to 35%, improving sustainability and urban liveability.

Which Areas are Excluded from the Low and Mid-Rise Housing Policy?

Certain high-risk or environmentally sensitive areas are excluded from these reforms.

🔹 Exclusion Criteria:

🚫 Land at high risk of bushfires or flooding

🚫 Land near dangerous goods pipelines or high aircraft noise zones

🚫 Heritage-listed sites

🚫 Bathurst, Hawkesbury, Blue Mountains & Wollondilly LGAs (due to evacuation concerns)

📌 Learn more about excluded areas here

📊 Heritage protections remain in place, ensuring that historic suburbs retain their architectural significance while accommodating smart growth.

Full List of Low and Mid-Rise Housing Areas

These reforms apply to 171 designated areas, including:

✔ Sydney Metro: Bankstown, Burwood, Hurstville, Rockdale, Hornsby, Parramatta, Penrith

✔ Central Coast: Gosford, Erina, Tuggerah, Wyong

✔ Newcastle & Hunter: Cessnock, Maitland, Charlestown, Kotara

✔ Illawarra-Shoalhaven: Wollongong, Nowra, Shellharbour, Kiama

📌 View the full list of affected LGAs here

Why These Housing Reforms Matter for NSW Residents

🏡 For First-Home Buyers: More affordable entry points into the housing market.

🏗 For Developers & Investors: Increased medium-density development opportunities.

📈 For Homeowners: Greater property value appreciation due to improved zoning flexibility.🚆 For Communities: Better-connected, walkable neighbourhoods near transport and amenities.

📊 A 2024 NSW Housing Report found that increasing housing density near transport hubs could boost local economies by $1.5 billion annually through increased foot traffic and demand for services.

Final Thoughts: The Future of Housing in NSW

The Low and Mid-Rise Housing Policy is designed to:

✅ Boost housing supply in well-connected areas

✅ Reduce housing affordability pressures

✅ Encourage sustainable, transit-oriented development

✅ Support urban renewal while protecting heritage and environmental constraints

📅 Implementation Date: 28 February 2025

Low and Mid-Rise Housing areas	Local Government Area (LGA)
Arncliffe station	Bayside
Banksia station	Bayside
Bexley North station	Bayside
Rockdale Plaza shopping centre	Bayside
Rockdale station and town centre	Bayside
Turrella station	Bayside
Kogarah station and town centre	Bayside; Georges River
Blacktown station and town centre	Blacktown
Doonside station	Blacktown
Mount Druitt station and town centre	Blacktown
Seven Hills station	Blacktown
Burwood station and town centre	Burwood
Camden town centre	Camden
Narellan Town Centre shopping centre	Camden
Campbelltown station and town centre	Campbelltown
Glenfield station	Campbelltown
Ingleburn station and town centre	Campbelltown
Macarthur station and town centre	Campbelltown
Minto station	Campbelltown
Concord town centre (Majors Bay Road)	Canada Bay
Concord West station	Canada Bay
Drummoyne town centre	Canada Bay
Five Dock town centre	Canada Bay
North Strathfield station	Canada Bay
Bankstown station	Canterbury Bankstown
Chester Hill Shopping Centre	Canterbury Bankstown
Regents Park station	Canterbury Bankstown; Cumberland
Beverly Hills station	Canterbury Bankstown; Georges River
Erina Fair shopping centre	Central Coast
Gosford station and town centre	Central Coast
Green Point Village shopping centre	Central Coast
The Entrance town centre	Central Coast
Tuggerah Westfield shopping centre	Central Coast
Woy Woy station and town centre	Central Coast
Wyong station and town centre	Central Coast
Cessnock town centre	Cessnock
Auburn station and town centre	Cumberland
Berala station and town centre	Cumberland
Granville station	Cumberland
Lidcombe station	Cumberland
Cabramatta station and town centre	Fairfield
Canley Vale station	Fairfield
Fairfield station and town centre	Fairfield
Hurstville station and town centre	Georges River
Mortdale station and town centre	Georges River
Oatley station	Georges River
Penshurst station	Georges River
Riverwood station and town centre	Georges River; Canterbury Bankstown
Asquith town centre	Hornsby
Hornsby station	Hornsby
Pennant Hills Market Place shopping centre	Hornsby
Thornleigh Marketplace shopping centre	Hornsby
Waitara station	Hornsby
Boronia Park town centre (Pittwater Road)	Hunters Hill; Ryde
Annandale town centre (Booth Street)	Inner West
Ashfield station	Inner West
Dulwich Hill station	Inner West
Leichhardt Market Place shopping centre	Inner West
Lilyfield light rail station	Inner West
Marrickville station	Inner West
Petersham station	Inner West
St Peters station	Inner West
Stanmore station	Inner West
Croydon station	Inner West; Burwood
Kiama town centre	Kiama
Gordon station and town centre	Ku-ring-gai
Killara station	Ku-ring-gai
Lindfield station and town centre	Ku-ring-gai
Pymble station	Ku-ring-gai
Roseville station	Ku-ring-gai
St Ives Shopping Village shopping centre	Ku-ring-gai
Turramurra station and town centre	Ku-ring-gai
Wahroonga station	Ku-ring-gai
Belmont town centre	Lake Macquarie
Boolaroo town centre (Main Road)	Lake Macquarie
Cardiff station	Lake Macquarie
Charlestown shopping centre	Lake Macquarie
Jewellstown Plaza shopping centre	Lake Macquarie
Morisset station and town centre	Lake Macquarie
Lane Cove town centre	Lane Cove
Liverpool station	Liverpool
Green Hills Stockland shopping centre	Maitland
Maitland town centre	Maitland
Rutherford Marketplace shopping centre	Maitland
Spit Junction town centre (Military Road and Spit Road)	Mosman
Adamstown station	Newcastle
Hamilton station	Newcastle
Junction Fair shopping centre	Newcastle
Kotara station	Newcastle
Mayfield town centre	Newcastle
Wallsend town centre	Newcastle
Waratah Village Shopping Centre	Newcastle
Cremorne town centre	North Sydney
Crows Nest station	North Sydney
Milsons Point station	North Sydney
Neutral Bay town centre	North Sydney
Victoria Cross station	North Sydney
Waverton station	North Sydney
Wollstonecraft station	North Sydney
St Leonards station	North Sydney; Lane Cove; Willoughby
Balgowlah Stockland shopping centre	Northern Beaches
Dee Why town centre	Northern Beaches
Forestville town centre	Northern Beaches
Forestway shopping centre	Northern Beaches
Frenchs Forest Precinct (Warringah Road)	Northern Beaches
Manly town centre	Northern Beaches
Manly Vale town centre	Northern Beaches
Mona Vale town centre	Northern Beaches
Warringah Mall shopping centre	Northern Beaches
Epping station and town centre	Parramatta
Carlingford Court shopping centre	Parramatta
Northmead Village shopping centre	Parramatta
Westmead station	Parramatta; Cumberland
Penrith station and town centre	Penrith
Nelson Bay town centre	Port Stephens
Raymond Terrace town centre	Port Stephens
Kensington light rail station	Randwick
Kingsford Juniors light rail station	Randwick
Maroubra Junction town centre	Randwick
Randwick town centre and light rail station	Randwick
UNSW Anzac Parade light rail station	Randwick
Eastwood station and town centre	Ryde
Macquarie Park station	Ryde
Meadowbank station	Ryde
North Ryde station	Ryde
Top Ryde shopping centre	Ryde
West Ryde station and town centre	Ryde
Gladesville town centre (Victoria Road)	Ryde; Hunters Hill
Albion Park town centre (Tongarra Road)	Shellharbour
Shellharbour town centre	Shellharbour
Warilla Grove shopping centre	Shellharbour
Bomaderry town centre (Meroo Street)	Shoalhaven
Nowra town centre	Shoalhaven
Flemington station	Strathfield
Homebush station	Strathfield
Caringbah station and town centre	Sutherland Shire
Cronulla station and town centre	Sutherland Shire
Engadine town centre	Sutherland Shire
Gymea station	Sutherland Shire
Kirrawee station and town centre	Sutherland Shire
Menai Marketplace shopping centre	Sutherland Shire
Miranda station and town centre	Sutherland Shire
Southgate shopping centre	Sutherland Shire
Sutherland station and town centre	Sutherland Shire
Woolooware station	Sutherland Shire
Broadway shopping centre and Glebe Point Road south	Sydney
Darlinghurst and Paddington town centre (Oxford Street)	Sydney
Erskineville station and town centre (Erskineville Road)	Sydney
Kings Cross station and town centre	Sydney
Redfern station	Sydney
Surry Hills south town centre (Crown Street and Cleveland Street)	Sydney
Waterloo town centre (Danks Street)	Sydney
Newtown station and town centre (King Street & Enmore Road)	Sydney; Inner West
Baulkham Hills town centre	The Hills
Bella Vista station	The Hills
Castle Hill station and town centre	The Hills
Hills Showground station	The Hills
Kellyville station	The Hills
Norwest station and town centre	The Hills
Winston Hills Mall shopping centre	The Hills; Parramatta
Bondi Junction station and town centre	Waverley
Artarmon station	Willoughby
Chatswood station and town centre	Willoughby
Northbridge Plaza shopping centre (Sailors Bay Road)	Willoughby
Corrimal town centre	Wollongong
Dapto town centre	Wollongong
Fairy Meadow town centre	Wollongong
Warrawong town centre	Wollongong
Double Bay town centre	Woollahra
Edgecliff station and town centre	Woollahra
Rose Bay town centre (New South Head Road)	Woollahra