Premier Dominic Perrottet says Labor's plan to create a "one-stop shop" for social housing would increase bureaucracy rather than actually delivering more homes for those in need.
The plan also received a mixed response from industry representatives and the Greens, who welcomed bringing public housing services together under one roof but noted more needed to be done to address supply shortfalls.
Opposition leader Chris Minns revealed plans on Monday night to merge the Land and Housing Corporation, Aboriginal Housing Office and Department of Communities and Justice Housing into one giant entity called Homes NSW, should his party win the March state election.