Investment measures are largely a continuation of existing schemes, despite the state remaining on track to fall short of its target of 377,000 new homes by 2029 under the National Housing Accord.
On Wednesday, NSW Treasurer Daniel Mookhey will deliver a post-budget address at an event held by the Committee for Economic Development of Australia.
The Urban Development Institute of Australia called the budget a missed opportunity, saying investment in high-impact infrastructure remains the best way to unlock new homes at scale.
"Unfortunately, the lack of direct investments in supply side initiatives in this budget will make it harder for us to turn around the housing crisis," said the institute's NSW chief executive Stuart Ayres.
"We need to see a greater share of the state's capital expenditure go to supporting investment in new homes."
NSW Housing Industry Association executive director Brad Armitage welcomed the budget measures, despite labelling them modest in scope.
"Although these measures are modest, they build on existing reforms aimed at increasing housing supply," he said.
These include $32.3 million over four years to establish a Modern Methods of Construction facility, aimed at cutting construction times by harnessing prefabrication, modular construction and digital technologies.
"Facilitating the use of pre-fabrication and modern methods of construction will foster greater innovation in the sector and assist with enhancing productivity," Mr Armitage said.
Urban Taskforce Australia, which represents property developers, also called the budget a lost opportunity for housing supply.
"We can only hope that the NSW government is keeping its powder dry for pre-election announcements, because this budget has very little by way of new support for new housing supply," chief executive Tom Forrest said.
Mr Forrest said his members would have liked to see reductions or deferrals of property-related taxes, which he says would result in greater housing supply and improved housing affordability.
The NSW Community Housing Industry Association welcomed the changes as helping to deliver more homes, but noted many people remained on waiting lists for government-assisted housing.
"There are now more than 70,000 households on the social housing waiting list in NSW, highlighting the scale of unmet need across the state," chief executive Luke Achterstraat said.
"The budget's housing measures provide a strong foundation, but the scale of the crisis means further investment in social and affordable housing is urgently required."
