AN airport that doesn't exist and a suburban airfield could stop vast tracts of land from becoming the solution to Sydney's housing crisis.
Extended noise restriction zones being considered by aviation authorities reveal that if Badgerys Creek is selected as the site for the city's second airport, the state government would be unable to build homes on a massive 99sq km zone within the southwest growth region.
Even if Badgerys Creek is finally scrapped, the new zones will ensure developers cannot build on 21sq km of land surrounding Camden.
The draft federal guidelines, currently before the National Airports Safeguarding Advisory Group, reveal a plan to classify an extra 128sq km of Sydney as affected by aircraft noise without a single flight pattern change.
New suburbs would be added to the noise zones surrounding Sydney Airport, which experts predict will have a dampening effect on real estate values. Development would also be banned on any greenfield site within the extended zones.
The Urban Development Institute of Australia NSW found that under the new contours, 97sq km of land around Sydney Airport and 10sq km around Bankstown airport would be reclassified as affected.
"What the Commonwealth government is proposing is a series of giant footprints across Sydney that will sterilise large tracts of land for development in greenfield areas and dictate what infill development takes place," UDIA chief executive Stephen Albin said.
"We've already got a major undersupply problem which is pushing the dream of home ownership beyond the reach of many people now, and will make it impossible for future generations if the problem isn't fixed.
"These draft guidelines present perhaps the biggest threat to our ability as a city to fix our housing supply and affordability crisis."
WSROC president Alison McLaren said the draft federal guidelines needed to be reconsidered.
Camden mayor Greg Warren said airport noise was not a major issue but the future was dependent on the decisions being made now.
"These two levels of government need to get their ducks in the row and start talking to each other about what they are doing," Mr Warren said.