Building homes for mental health recovery

20 September 2025

​The Minns Labor Government will build up to 60 new homes with specialist on-site support across the Hunter and Sydney to help people living with complex and long-term mental health needs. 

In a NSW first, these purpose-built homes will support people with the highest need to move on from life in hospital, those experiencing severe and persistent mental illness who have spent up to 10 years or more as an inpatient. 

The project will ensure more people can live with dignity in safe, modern housing while getting the care they need. 

Each residence will provide a therapeutic environment where people can transition from long-stay hospital care into the community, supported 24/7 by specialist staff. Homes will include private and shared living areas and outdoor spaces designed to promote recovery, stability and independence. 

Confirmed locations: 

  • Hunter region: Waratah and Maitland 
  • Sydney: Gladesville and Ryde 

This project is part of the $700 million Mental Health Infrastructure Program and sits alongside the Government’s record $6.6 billion Building Homes for NSW program - the largest investment in housing in our state’s history. 

These new homes are just one part of a $3.1 billion mental health investment by the Minns Labor Government to build a better New South Wales where people can get the care they need. 

In a first for the state, this government introduced five dedicated Mental Health Housing Liaison Officers to work with Homes NSW and Department of Communities and Justice to support people living with mental illness. 

Other frontline investments include $26.37 million to deliver free mental health support at Medicare Mental Health Centres and $35.7 million for the operation of 21 Safe Havens providing care for people in distress. 

The world-leading Suicide Prevention Bill 2025 was also passed this month, fulfilling an election commitment and placing suicide prevention at the centre of all government decision making. 

Minister for Mental Health Rose Jackson said: 

“This investment is about building homes and building hope. For too long, people with complex mental health needs were left in hospital wards instead of having the chance to live in safe homes in their communities. 

“To date, we’ve supported more than 1,500 people to transition out of hospital after extended stays but this is the first time we’re building specific homes that will give individuals hospital-level care outside the hospital. 

“These new residences will deliver dignity, independence and recovery, while making sure people stay connected to services, transport and community life.” 

Member for Maitland Jenny Aitchison said: 

“Local targeted infrastructure and supports to address mental health needs in the Maitland are very welcome. 

“I have long advocated, along with many in the Maitland Community for these types of supports for those with complex mental health needs and I am so proud that a Minns Labor Government is delivering these homes.” 

Member for Wallsend Sonia Hornery said: 

“I’m pleased to see the NSW Government investing so heavily in mental health support and housing infrastructure in the Wallsend electorate. 

“These residences are on top of an enormous support package for both mental health and the construction of more than 50 social housing residences in my electorate already. We are committed to make further improvements  in these sectors.” 

Member for Newcastle Tim Crakanthorp said: 

“The transition from hospital into the community can be difficult, especially after a long stay.” 

“These fit-for-purpose homes will ensure tenants have appropriate care but also support them to recover independently.”