New Bill Targets 1,200 Homes in Wollongong by 2028

The NSW Parliament passed the Illawarra Shoalhaven Housing Affordability Bill 2026 on 8 July. The legislation alters planning approval timelines for residential projects in the Wollongong local government area and surrounding Shoalhaven councils.

The bill arrives as the state government updates regional development targets set out in the 2025-26 NSW Budget papers. Those papers listed housing supply as a priority for the Illawarra Shoalhaven region amid existing waiting lists for social housing managed by Housing NSW.

Changes for Wollongong households

Residents looking for rental accommodation in suburbs such as Warrawong, Berkeley and Port Kembla will see councils required to decide on development applications within 90 days for projects that meet the bill's density criteria. Local advocates note that shorter decision times could bring more one and two bedroom units onto the market near the Port Kembla renewable energy zone.

Workers employed at BlueScope's steelworks or at the adjacent port facilities may find new housing options closer to their workplaces. The legislation states that 15 per cent of approved dwellings in each rezoned precinct must be reserved for households on the social housing register.

The Australian Bureau of Statistics recorded 4,800 social housing applications from the Illawarra in the June 2025 quarter. The bill directs an additional $42 million from the NSW Housing Acceleration Fund toward infrastructure such as water and road connections that support the new dwellings.

Implementation begins on 1 January 2027. Wollongong City Council will publish its first quarterly progress report under the new rules by 31 March 2027, covering the number of approvals granted and the location of completed units.