The NSW Government will roll out a massive 10-year overhaul of the state's public housing system that it claims will generate up to 23,000 homes and boost construction activity by $22 billion.
Social Housing Minister Brad Hazzard unveiled the revamp on Sunday, saying it would fix the long-term neglect of housing estates around the state.
Under the plan, public housing estates will be knocked down and rebuilt in partnership with the private and non-government sectors. The government says such redevelopments will "target" a 70:30 ratio between private dwellings and social housing tenants.
Once implemented, the plan will also result in the community housing sector either owning or managing up to 35 percent of all social housing in NSW.
Hazzard told AAP the combination of public and private dwellings would be good for communities.
"Crime drops, unemployment drops and the mix of housing sends a clear message to those in public housing, particularly those youngsters coming through, that getting a job, an education is an important part of life," he said.
He said the changes would help social housing become "a vehicle for breaking disadvantage".
The full outline of the Baird Government's plan can be read here.
The government says action is needed on social housing because 60,000 households are currently on the waiting list for state-sponsored accommodation.
It hopes the new package will result in a 5 percent lift in the number of people leaving social housing and a 10 percent increase in the number of young people moving from homelessness services to long term accommodation.
Social housing reform sparked controversy in 2015 when the government sold 300 state-owned properties in Sydney's Miller's Point.
This week, Hazzard tweeted that some impacted residents in the area would be "moving locally".
In December, the government unveiled plans to raze social housing in Waterloo to make way for a new metro line.