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The Role of a Local Housing Strategy

Sometimes a council will decide to prepare a housing strategy in response to a specific issue that has emerged within the community — such as a need for affordable housing, or an increasing need to accommodate special needs groups such as the aged.


Councils may decide to undertake a Local Housing Strategy to help them meet regional planning requirements. For instance, the Sydney Metropolitan Strategy required local councils to undertake a housing market demand and supply analysis and to identify opportunities to increase housing supply in relation to these identified needs.


A Local Housing Strategy will generally be directed at encouraging a range of housing that meets the existing and future housing needs identified by council. A strategy should seek to meet the demand for housing, as well as improving housing mix, affordability, and the availability of housing for those with special needs. A Local Housing Strategy will usually combine three key elements:

  • analysis of local or regional housing needs and conditions
  • an aim (or aims) and a more detailed set of objectives
  • concrete measures to implement these objectives.

These elements of the strategy may be communicated through a stand-alone document or be embedded within other strategies or plans prepared by council.
While local government is only one of the levels of government that can influence housing, it can nonetheless have a considerable impact on improving housing outcomes for local communities. Usually it is the level of government most in touch with the needs of those communities. Councils can achieve improvements by being mindful of housing impacts when exercising other functions and by adjusting their approach if required. They can also pursue more specific initiatives that may be incorporated in a Local Housing Strategy.


The Local Housing Strategy provides a cohesive framework for responding to the housing issues affecting the local community. These issues may relate to:

  • population change
  • housing market trends
  • coordination of services
  • protection of urban amenity
  • environmental sustainability and efficient land use
  • economic and community development.

As well as articulating a framework to help guide council action, the Local Housing Strategy communicates councils’ housing-related objectives and responsibilities to the community. It provides clarity and certainty about future residential development trends and policies for councillors, staff, the community and developers.


Local Housing Strategies can help councils:

  • identify potential sites for new residential development and redevelopment
  • support local housing objectives more effectively by reviewing existing planning controls
  • initiate or facilitate local housing projects in response to specific local needs — in partnership with the development industry, community housing providers and other levels of government
  • support local housing providers 
  • improve council systems for monitoring and responding to local housing needs 
  • coordinate housing responsibilities in a strategic way across all relevant sectors of council.

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Last modified: Sunday, 5 February 2012
Housing NSW © 2012Date last modified: Sunday, 5 February 2012