Are Churches NSW Govt’s Saving Grace or Just Another Housing Headline ? -

Or… Are We Unlocking a New Frontier in NSW’s Affordable Housing Crisis ?

In the ongoing battle against New South Wales’ deepening housing shortage, an unexpected ally has stepped forward: the churches.

Faith-based organizations across NSW are offering a potentially game-changing solution by unlocking their underutilized land to help ease the housing crisis. But is this a true salvation or just another fleeting headline?

Faith-Based Land: An Untapped Resource

According to Faith Housing Australia, 747 church-owned sites — many situated near transport hubs — are currently zoned for worship-only use. If rezoned, these parcels of land could yield as many as 20,000 new homes. This represents a significant, community-driven opportunity to create meaningful, affordable housing supply.

The NSW Government, for its part, seems receptive to this new direction. With the introduction of recent Low & Mid-Rise Housing Reforms, the government is encouraging Transport-Oriented Development (TOD) — higher-density housing in areas with access to reliable public transport and existing infrastructure.

The Federal Government Sweetens the Deal

It’s not just state-level initiatives at play. The Federal Government is actively incentivizing faith groups to release land for housing. Faith-based organizations have already contributed land to an estimated 10% of Housing Australia Future Fund projects — a significant start towards building affordable homes at scale.

Real Projects, Real Impact

Here are just a few examples of what’s already happening:

📍 Bankstown: Sydney Anglican Property is delivering 185 social and affordable homes.
📍 Marrickville: Fresh Hope Communities has partnered with Nightingale Housing to build 54 affordable units, priced at just 80% of market rent.

These are not one-off charity projects — they are scalable models blending community mission with practical housing development.

Sydney’s New (Unwanted) Title

The urgency couldn’t be greater. Sydney has recently earned the unfortunate distinction of becoming the world’s most expensive city for housing, surpassing even Hong Kong. According to recent data, Sydney’s median property price hit a record high — adding immense pressure on all levels of government to deliver rapid solutions.

Read more about Sydney’s rising prices here

What Needs to Happen Next?

While the willingness of faith groups to participate is encouraging, several key steps are still necessary for this movement to truly take flight:

✅ Planning and zoning reforms to allow residential development on church-owned land.
✅ Strong partnerships between churches, not-for-profits, and private developers to ensure viable projects.
✅ Continued leadership from all levels of government to coordinate, fund, and streamline approvals.

Could Faith-Based Land Be the Game Changer ?

The question remains: will this collaboration between faith-based organizations and governments become the scalable solution NSW desperately needs ? The early signs are promising, but success will depend on clear policy, strong partnerships, and a shared commitment to addressing one of Australia’s most pressing crises.

Frequently Asked Questions

Q1: Why are churches offering land for affordable housing in NSW?
A: Many churches in NSW own large parcels of underutilized land, often located near transport hubs. With government incentives and new planning reforms, these organizations are exploring opportunities to support their communities by providing affordable housing options.

Q2: How many homes could potentially be built on church-owned land?
A: According to Faith Housing Australia, rezoning 747 church-owned sites across NSW could deliver up to 20,000 new homes.

Q3: What is Transport-Oriented Development (TOD) ?
A: TOD refers to building higher-density housing near public transport hubs, allowing more people to live close to jobs, schools, and services while reducing car dependency. NSW’s recent low & mid-rise reforms strongly support TOD.

Q4: Are there any successful examples already underway?
A: Yes. In Bankstown, Sydney Anglican Property is building 185 affordable homes, while in Marrickville, Fresh Hope Communities and Nightingale Housing have partnered to deliver 54 affordable units at 80% of market rent.

Q5: Can granny flats play a role in solving the NSW housing crisis ?
A: Absolutely. Small-scale developments like granny flats provide flexible, affordable housing solutions, particularly in existing suburbs, and complement larger developments like those being explored on church land.

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👉 Looking to Unlock More Housing Potential ?

At Granny Flat News, we’re always on the lookout for creative solutions to Australia’s housing challenges. Whether you’re a homeowner, developer, policy-maker, or simply curious about the future of housing — we’d love to hear your thoughts.

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