Official figures released by the Australian Bureau of Statistics shows 73,606 new residential dwellings were approved in the 12 months to August 2016.
Planning Minister Rob Stokes said NSW was leading the nation for housing approvals, with housing completions also at a 16-year high.
“These record housing approval figures show the NSW planning system is working to deliver the homes people need, where they need them,” Mr Stokes said.
"By delivering a simpler, more efficient planning system, we can help improve housing supply, housing choice and help people get into the property market."
Faster housing approvals is a Premier’s Priority, with the goal to approve 90 per cent of residential developments within 40 days. The NSW Government is making the approval process faster and simpler by allowing people to lodge development applications and complying development certificate applications online and encouraging the take-up of complying development.