National cabinet announce more than 3.5billion for housing: here is what an expert wants for the Hunter

National cabinet has set a target of 1.2 million new homes over five years from June 2024, up from last year's target of one million.

Some $500 million in competitive funding for local and state governments has been allocated for housing supply and infrastructure in "well-located areas".

This bucket is for all types of dwellings, but Shelter NSW senior policy advisor Cathy Callaghan hopes the Hunter will receive a slice of the budget for projects that emphasise social housing, including the proposed Hunter Park precinct. Increasing the number of dwellings outside of social housing will help "all [income] brackets", she said.

"We have had ten years of Commonwealth and state governments basically walking away from this," Ms Callaghan said.

"If you look around the Newcastle and Hunter, the count of [social housing] dwellings has gone backwards, even as the area was growing."

In Lake Macquarie, social housing dwellings dropped by "hundreds" from 2011-2020. In September last year, the Hunter had at least 1400 people awaiting social housing. Ms Callaghan said many wait as long as a decade.

The $500 million will be used in part for amenities, including sewerage, plumbing and transport which can be under "pressure" from new developments.

Under the cabinet plans, Ms Callaghan believed considering areas in the Hunter with existing infrastructure would be crucial in developing sustainable housing solutions.

"It is not sexy," she said. "But it is so critical."

She cited community consultation with City of Newcastle as a vital step in encouraging the growing population to promote housing developments.

"We want to make sure these are places people want to stay," she said. "We want the people of Newcastle to be thinking about the future."

While specific policies are yet to be determined, Ms Callaghan said national cabinet's response addresses the housing crisis in a "tiered approach".

An additional $3 billion was named as performance-based funding for states and territories who meet more than their allocated share of the housing target.

Ms Callaghan said the "welcome announcement" should incentivise NSW state governments and local councils to take action.

A City of Newcastle spokesperson said the council was "currently assessing the details of the national cabinet's housing support program in consideration of any future funding opportunities".

Application for funding may be made as part of the Local Housing Strategy 2020, which includes increased dwellings over the next 20 years.

The council is in the third year of a partnership with Housing NSW to co-fund the delivery of social housing, including six sites in Lambton, Waratah West, Shortland, Adamstown and East Maitland.

The national cabinet package also includes rental reforms like nationally-consistent grounds for evictions, a move towards limited rent increase and phasing in minimal rental standards.

It joins a one-off $2 billion investment in social housing announced in buy federal government om June, distributed among states and territories over a two-week period. Expenditure was determined by each state.

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