The state government's plan to address the chronic shortage of affordable housing across Sydney has received broad support from its political opponents and the community housing sector, but has triggered alarm from the property development industry.

Capping off a week in which Sydney's housing affordability received heightened attention, Fairfax Media revealed on Friday the NSW government plans to unveil a new "inclusionary zoning" policy mandating affordable housing targets across the Sydney area.

The policy, which will be implemented by the Greater Sydney Commission through "district plans", will require new housing developments on rezoned land to dedicate 5-10 per cent of the extra floor space to low-income homes, which will be managed by community housing providers.

The community housing sector, which has long advocated for inclusionary zoning schemes, applauded the NSW government's move, which it said would bring Sydney closer into line with international cities such as New York and London.