The Waterloo renewal project will deliver 3,300 homes including 1,000 social homes, but activists warn the demolition of 750 public housing units risks displacing long-term residents and destroying community networks.
Property & Suburbs Desk is a contributing writer covering property and public affairs for The Sydney Times.
The Waterloo renewal project will deliver 3,300 new homes, including more than 1,000 social homes, on the site of Sydney's largest public housing estate, but activists warn that the demolition of 750 existing public housing units risks displacing long-term residents and destroying community networks.
The NSW Government, working with Homes NSW and the Stockland consortium, is renewing the Waterloo Estate in stages over the next 30 years. Waterloo South, the first stage, will deliver approximately 3,300 new homes over the next 10 to 15 years. The tenure mix will be 50 percent private housing, 30 percent social housing and 20 percent affordable housing. Of the social and affordable homes, 20 percent and 15 percent respectively will be prioritised for Aboriginal and Torres Strait Islander people.
The project will replace 750 older public housing properties with new, well-designed and fit-for-purpose homes. The current residents have been relocated to other public housing, including at least 70 into the newly-built homes next to the Waterloo Sydney Metro station. The NSW Government says all impacted residents were given at least six months' notice and provided with dedicated support throughout the relocation process.
Stockland, Birribee Housing, Link Wentworth Housing and City West Housing form the delivery partnership for Waterloo South. The consortium is responsible for the design, construction and ongoing operation of the new community, with Homes NSW retaining ownership of the social housing component. The project represents one of the largest social housing renewal initiatives in Australian history.
The existing Waterloo public housing estate consists of aging walk-up blocks built in the 1960s and 1970s. Many units do not meet contemporary standards for accessibility, energy efficiency or safety. The NSW Housing Minister has described the estate as "not functional communities," arguing that the mixed-tenure model will create a more diverse and sustainable neighbourhood.
The project will deliver a net increase of 250 social homes on the Waterloo South site, with additional social housing at Waterloo Metro Quarter and Elizabeth Street, Redfern. The new homes will be built to modern standards, with better accessibility, energy efficiency and community facilities. The project also includes new parks, shops and community spaces, with a commitment to respect, honour and celebrate Aboriginal people and Gadigal culture.
Housing activists and local residents argue that the demolition of the existing public housing stock is a net loss of affordable housing in an area where low-cost accommodation is already scarce. The Change.org petition to save the Paddington boarding house, which attracted more than 27,000 supporters, reflects broader community concern about the loss of existing affordable housing.
Karyn Brown, a Waterloo public housing resident and housing activist, criticised the Minister's comments about the estate not being a functional community. "It should remain an affordable suburb because we need people close to the city who do the low paid jobs," she said. "The people who pour your beers, serve your meals and clean up after you and the hospital orderlies."
The NSW Greens housing and homelessness spokesperson Jenny Leong said the government should be building 100 percent public housing on public land. "The solution is not to deliver more private housing, the solution is for the state government to massively increase the amount of public housing," she said.
The critical question is what happens to the residents who are displaced by the demolition. The NSW Government says all impacted residents were given at least six months' notice and provided with dedicated support. However, housing activists say at least 10 people were still living on site during the fencing works in May 2026.
The replacement of 750 public housing units with 1,000 social and affordable homes sounds like a net gain, but the affordability of the affordable homes is not guaranteed. The NSW Government has not confirmed how much of the 20 percent affordable housing will be in perpetuity, saying it is yet to be finalised as part of the planning process. If the affordable housing is only affordable for 15 or 20 years, the long-term outcome could be a net loss of permanently affordable housing in inner Sydney.
The Housing SEPP requires only 15 years of affordability for affordable housing contributions, a timeframe that critics argue does not provide the long-term solutions required to ease Sydney's housing affordability woes. Professor Chris Pettit from UNSW City Futures Research Centre told The Age that the 15-year affordable housing mechanism "may not present the long-term solutions required to ease Sydney's housing affordability woes. In fact, it may make matters worse."
According to the NSW Government Waterloo renewal project page, the project is designed to enhance the strength and diversity of Waterloo, a unique urban village on Gadigal Land. For more on Sydney housing and property, see Property & Suburbs.
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