Understanding NSW's Low and Mid-Rise Housing Policy

What is the Low and Mid-Rise Housing Policy?

The Low and Mid-Rise Housing Policy is about creating more housing choice for people at different stages of life. Housing diversity means creating more homes to suit different lifestyles across the whole community.

The NSW Government is committed to supporting a choice of well-designed and sustainable homes in well-located areas within walking distance of shops, services and frequent public transport. This policy is expected to deliver up to 112,000 homes across NSW over the next 5 years.

Understanding Low-Rise and Mid-Rise Housing

Low-rise housing is generally 1–2 storeys and includes dual occupancies (2 dwellings on the same lot), terraces, townhouses, and low-rise apartment buildings. It does not include freestanding houses.

Mid-rise housing is generally 3–6 storey apartment buildings that provide medium-density residential accommodation near transport and services.

How the Policy Works

The Low and Mid-Rise Housing Policy is part of the State Environmental Planning Policy (Housing) 2021. The policy changes planning controls to encourage more low and mid-rise housing to be built within 800 metres walking distance from nominated town centres and transport hubs.

We need more low and mid-rise housing to fill the gap between freestanding homes and high-rise apartment buildings, so that everyone can have a choice in the type of homes they live in.

Two-Stage Implementation

Stage 1: Permitting Dual Occupancies - The first stage of the policy started on 1 July 2024. It permitted dual occupancies and semi-detached homes in the R2 low-density residential zone across all of NSW. This change allows property owners to subdivide existing lots and build two homes where previously only one was permitted.

Stage 2: Encouraging Low and Mid-Rise Housing - The second stage introduces broader changes to encourage terraces, townhouses, and apartment buildings in appropriate locations near transport and services.

Where the Policy Applies

The policy applies to land within 800 metres walking distance of specified town centres and transport hubs. Not all areas are included—heritage conservation areas and environmentally sensitive land may be excluded.

Understanding whether your property is within an eligible area is the first step in exploring development opportunities under this policy.

What This Means for Property Owners

For many property owners, this policy creates new development opportunities. You may now be able to build a dual occupancy where previously only a single dwelling was permitted, develop terraces or townhouses on larger sites, or explore mid-rise apartment development near transport.

However, specific requirements around lot size, frontage, building height, and design quality still apply. Professional advice is essential to understand what's achievable on your site.

Want to explore development opportunities under the LMR Housing Policy? Contact us for a site assessment.