Sydney will need an additional 725,000 homes by 2036 to accommodate its growing and ageing population, with Parramatta, Blacktown, Sydney City, Liverpool and The Hills making up the local government hot spots.

The city will have to accommodate close to 2 million extra people by that time, according to the NSW government’s annual housing supply forecast.

“Sydney’s population is projected to grow by around 1.74 million people to 2036, resulting in the need for around 725,000 additional homes to 2036 to accommodate the growing and ageing population,” the forecast says.

The forecast estimates that 22,100 new homes will be built in Parramatta over the next five years, 18,300 in Blacktown, 14,850 in Sydney, 11,950 in Liverpool and 11,700 in The Hills.

The survey released by the Department of Planning and Environment this month shows that in total, around 191,500 new dwellings will be built across the city over the next five years.

That figure represents a 22 per cent increase, or 34,300 more homes than over the last five years.

“Sydney needs to build 725,000 new homes in the next 20 years, or around 36,000 per annum, to accommodate a growing population,” executive director Justin Douglas said.

He said the forecast takes account of residential developments that are currently being assessed, constructions that have been approved but not yet commenced, and analysis of likely future development under current zoning and planning controls.

Mr Douglas said the forecast will help guide government agencies and local councils in strategic land use and planning for infrastructure and service delivery, to ensure people were moving into well supported communities.

“The forecast helps to inform decisions on future land use zoning to ensure there’s a solid pipeline of new housing supply,” Mr Douglas said.

“It takes account of current residential developments under assessment, approved but not commenced construction, and those under construction, as well as analysis of likely future development under current zoning and planning controls.

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