Sydney renters could occupy their homes for decades or might even pass them down to their children under a proposal to increase the supply of affordable and stable housing for people locked out of Sydney's surging property market the NSW government announced it was developing on Friday.

NSW Treasurer Dominic Perrottet said the government was "very keen" to look at creating a "build to rent" sector of property development in NSW to make housing more stable and affordable for the one-third of Sydney-siders who rent.

Treasurer Dominic Perrottet says consultants are needed for their expertise. Credit:Geoff Jones

The build-to-rent sector has big investors build apartments to lease on a long-term basis, sometimes indefinitely. Investors receive steady returns; renters get steady living arrangements in turn, advocates say.

In a speech to the NSW Property Council Mr Perrottet said the government had already begun exploring options for incentivising investors to build for steady rental returns in favour of windfall profits, which some analysts say have held back the model especially in Sydney's growing market.