First look at new mental health housing

12 May 2026

In a state first, the Minns Labor Government is building homes for people living with complex, long-term mental health needs, offering up to 60 places in new purpose-built residences with specialist on-site support.

Communities across Sydney and the Hunter region are getting their first look at designs for the new mental health homes, which will offer a community-based alternative to hospital care.

These new homes form part of a record $3.1 billion mental health investment by the NSW Government to build a better New South Wales where people can get the support 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.

The residential services will provide on-site clinical and psychosocial support, supporting people with significant mental health needs to transition from long term or repeated hospital admissions into high-quality supported housing.

New artist impressions reveal plans for private and shared living areas, and outdoor spaces, all designed to create a safe, therapeutic environment that supports recovery, while helping residents build skills needed for more independent community living.

New homes, delivered under the Pathways to Community Living Initiative, will be built in:
  • Henley and North Ryde in Northern Sydney
  • Maitland and Waratah in the Hunter region
  • Lalor Park and Blacktown in Western Sydney.
​This initiative is part of the $700 million Statewide Mental Health Infrastructure Program and complements the Minns Government’s record $6.6 billion Building Homes for NSW program, the largest investment in housing in our state’s history. 

This investment reflects a commitment to building inclusive, community-based mental health programs and infrastructure.

Construction is expected to start this year, following planning approval, and residents are expected to move into the first new homes from 2028.

Quotes attributable to Minister for Mental Health Rose Jackson:
”For the first time in NSW, we are delivering purpose built homes that will allow people to move out of hospital and move on with their lives. This is about giving people a real home with appropriate care and support, not a hospital bed while they recover.

“These new residences will support up to 60 people across Sydney and the Hunter to rebuild their lives in the community, with a safety net there to catch them.

“We know there is strong evidence to support the need for greater investment in programs that help people with mental health challenges to live independently in the community and that’s why we’re targeting our investment in this area.

“This is a step towards modernising mental health care in NSW and we’re excited to share a first look at these new homes, designed in consultation with people with lived experience, their carers, and mental health staff.”

Quotes attributable to Member for Maitland Jenny Aitchison:
“Local housing and infrastructure to support mental health needs in the Maitland region is very welcome. 

“I have long advocated, along with many in the Maitland Community, for better support for people with complex mental health needs, and I am so proud that the NSW Government is delivering these homes.”

Quotes attributable to Member for Wallsend Sonia Hornery:
“I’m pleased to see strong NSW Government investment in mental health support and housing infrastructure. 

“These new residences in Waratah are on top of the construction of more than 50 social housing residences in nearby Wallsend, which is my electorate. We are committed to make further improvements in these sectors.” 

Quotes attributable to Member for Newcastle Tim Crakanthorp:  
“The transition from hospital into the community can be difficult, especially after a long stay. 

“These purpose-built residences will ensure individuals receive appropriate care and support within a home-like environment to recover and transition to supported community living.”

Current as at: Tuesday 12 May 2026