Advocacy groups have slammed housing funding in the NSW budget as a "drop in the ocean" compared to what's needed to fix the state's growing affordability and homelessness crisis.
The Labor government's first budget on Tuesday included $2.2 billion for housing infrastructure.
The majority of the money, $1.9 billion, will go towards supporting infrastructure such as roads, parks and schools to help with the future construction of extra homes.
The government's land and property development arm, Landcom, will receive the remaining $300 million to speed up housing construction.
Treasurer Daniel Mookhey said that money would go towards building nearly 4700 new homes, 30 per cent of which would be affordable housing.
It was important to get the community infrastructure right to support new housing developments, he told reporters.
"Money is now being mobilised to build people the critical, practical infrastructure they need (because) you can't get the keys to your house unless there's a street that goes to your driveway," he said.
"If we don't build the streets, no one will build a house."
But Homelessness NSW said a separate $224 million package for social and emergency housing "amounted to crumbs" and would barely scratch the surface of the state's homelessness crisis.
The package aimed to increase access to temporary accommodation and provide a boost to specialist homelessness services.
"We need to be honest about the scale of the challenge and the need for significant new investment, not window-dressing commitments," Homelessness NSW acting chief executive Amy Hains said.
"The $5.9 million in homelessness services funding still leaves frontline services facing a huge funding shortfall given the increased cost of delivering services."
Ms Hains said services would need $50 million over two years to continue operating and meet current demand.
Community Housing Industry Association NSW said while the investment in Landcom was welcomed, the association expected the funding to only deliver around 1400 affordable homes by 2039/40.
"That is roughly 80 affordable homes a year, at a time when the unmet housing need in NSW stands at over 220,000 homes," chief executive Mark Degotardi said.
"It is a drop in the ocean (and) it wouldn't even meet the projected demand in any one of Sydney's (council areas), let alone the statewide demand."
Under a national housing accord, NSW has a target of delivering 75,000 extra homes each year for five years.
