In another step toward easing New South Wales’ housing shortfall, the NSW Government has announced plans to transform a former TAFE NSW site in East Tamworth into a mixed-tenure residential community featuring nearly 90 new homes.
The 6.7-hectare site, once used for vocational training, has been acquired by Homes NSW as part of the government’s $6.6 billion Building Homes for NSW program, the largest housing investment in the state’s history.
With Tamworth’s rental vacancy rate sitting at around 1.6 per cent, among the lowest in NSW the redevelopment will inject much-needed supply into a strained market.
Building Homes and Strengthening Communities
Plans for the redevelopment include 89 new dwellings capable of housing up to 220 residents, with a strong focus on inclusion and diversity of tenure.
Of the total homes, 39 will be allocated to social housing for seniors, while around 50 will be made available on the private market. The aim is to create a balanced community that supports affordability, independence, and social connection.
Minister for Housing Rose Jackson said the project is a direct outcome of the statewide land audit, which identified surplus government-owned land suitable for new housing.
“Every vacant site is an opportunity for much-needed new homes in our cities and in our regions,” Jackson said.
“By unlocking unused land like this TAFE NSW site, we can deliver more homes for seniors, create new pathways for private ownership, and build stronger, more connected communities.”
The homes will be designed to modern standards, with energy efficiency, accessibility, and longevity central to the design brief, qualities increasingly sought after by regional residents and downsizers alike.
Reinvesting in Skills and Training
Importantly, the redevelopment won’t come at the cost of local education. The former TAFE site was identified as surplus land after the Department of Education confirmed it was no longer required for training delivery in Tamworth.
All proceeds from the transfer will be reinvested into TAFE NSW to upgrade facilities and equipment across the state, ensuring continued investment in skills development, a vital factor as the construction industry faces ongoing workforce shortages.
Minister for Skills, TAFE and Tertiary Education Steve Whan said the move represents a “win-win” for the community.
“By transforming vacant land into new homes, we’re investing in the future of the community and region,” Whan said.
“Repurposing the surplus land will support the delivery of much-needed homes without affecting TAFE NSW’s skills training delivery at Tamworth. The proceeds will help us deliver upgraded facilities and training spaces so students can continue learning in modern, industry-standard environments.”
A Broader Shift in NSW Housing Strategy
Since coming to office in 2023, the Minns Government has set an ambitious agenda to accelerate housing delivery across NSW, targeting both metropolitan and regional markets.
The government’s broader plan includes:
- 30,000 new homes on surplus government land, including 8,400 social housing units
- A world-leading presale guarantee scheme to fast-track construction
- Establishment of the Housing Delivery Authority to streamline approvals
- Major planning reforms to prioritise homes near public transport and job centres
Together, these initiatives represent a shift toward what Jackson describes as “a faster, fairer, and more modern planning process”, one that responds to changing demographics and local demand.
The East Tamworth redevelopment follows similar government-led projects in regional hubs such as Wagga Wagga, Goulburn, and Dubbo, all designed to inject housing supply while stimulating regional economies.
A Model for Regional Renewal
For Tamworth, a growing inland city recognised for its strong employment base and lifestyle appeal, the project comes at a crucial time. The city’s population has expanded steadily, yet housing delivery has struggled to keep up, particularly for lower-income and senior residents.
Local builders and trades are expected to benefit from the project through procurement opportunities and employment as the works progress.
The development also reflects a wider conversation happening across Australia about how to better use government-owned land to address the housing crisis.
By combining social, affordable, and private dwellings within a single precinct, the East Tamworth project aligns with best-practice urban renewal strategies seen in parts of Queensland and Victoria models that prioritise integration rather than segregation of housing types.
“These new homes will help move more people off the housing waitlist and into a modern, secure home,” Jackson said. “No one should be without a safe place to call home.”
Industry Perspective: What This Means for Builders
For the building industry, projects like East Tamworth signal growing opportunities for collaboration with government housing agencies and community housing providers.
Regional housing delivery is expected to be a major growth area over the next five years, as state and federal governments seek to decentralise population growth and support regional economies.
Builders capable of managing medium-density and mixed-tenure projects, especially those that integrate sustainability and accessibility will be well positioned to secure upcoming government contracts.
The Good Builder community has seen a steady rise in engagement from builders interested in regional diversification, particularly as major cities face higher land costs and planning bottlenecks.
Looking Ahead
The transformation of Tamworth’s former TAFE site represents more than just a housing project, it’s a tangible example of how government, education, and housing sectors can align to deliver community outcomes.
It supports the dual objectives of addressing the housing shortage and reinvesting in the future workforce, both critical to the long-term health of the construction sector.
As the Building Homes for NSW program gathers momentum, it’s likely that other underutilised public assets will follow a similar path, unlocking new opportunities for builders, planners, and suppliers across the state.
For Tamworth residents, the message is clear: after years of limited rental availability and rising prices, help is on the way and it’s being built right in the heart of town.









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