Sydney is facing a housing deficit that will rise by 190,000 homes within 10 years unless local councils accelerate retirement village zoning and the number of new approvals, according to a new Property Council report.

In the first decade since housing targets were set for councils, they have fallen short by 51,000 homes – or 23%. Only five councils have kept pace with population growth.

The report forecast that Sydney will be short 190,000 homes in 10 years time. The big priority is faster rezoning for urban renewal along transport corridors, old industrial land and town centres.