"Working with councils, rezoning is one important lever that we are pulling to get the ball rolling on more housing supply across our state," Premier Dominic Perrottet said on Monday.

"We are throwing everything at getting more houses built so more people get keys in doors and can realise their dream of owning a home."

Through the $73.5 million Rezoning Pathways Program, ten areas will be rezoned, including five in western Sydney, at Riverstone, Camellia-Rosehill, Macquarie Park, two sites in Parramatta, plus one site in Eveleigh in central Sydney, and one site in Broadmeadow in Newcastle.

No new developments would be built in flood-prone areas and environmental risks would be considered, Mr Perrottet added.

"I've made it very clear we shouldn't be building on floodplains," he said.

"At the same time, we need to get the balance right.

"We need to keep building homes. We can't have an Australia that can't house its children."

Planning and Homes Minister Anthony Roberts said accelerating the rezoning program would get more areas to the point of being shovel ready.

"We're creating a pipeline for tens of thousands more homes, giving more people in NSW the opportunity to put a roof over their heads," he said.

Labor Leader Chris Minns said major jumps in population in western Sydney were not cause for celebration, as the area struggled to cope with a lack of services.

"The huge increase in populations to communities west of Parramatta is nowhere near matched with the infrastructure that those communities need," he said.

"There's not enough infrastructure today, let alone prospective or target population increases."

The program is part of the state government's $2.8 billion housing package announced in the budget, which included stamp duty reform for first home buyers.

It comes on the back of the latest Rental Affordability Index, which shows renting has become more expensive in Sydney over the last year, and has been rising since the COVID-19 pandemic.

Earlier this month the government announced it would assume responsibility for three planning proposals across the Macarthur Region, saying their approval could lead to the construction of 19,000 new homes as well as providing koala corridors.

While planning proposals are usually assessed by local councils, this program gives the government the ability to make assessments and lead rezoning work on planning proposals it deems significant.

A pilot is underway for developers proposing projects offering more than 1000 homes in metropolitan areas, and more than 300 homes in regional areas.

Australian Associated Press