NSW Planning Minister Anthony Roberts has warned the housing development industry it risks losing its "social licence" to operate if it does not do more to restore trust with the public.

Mr Roberts told a lunch hosted by the Housing Industry Association on Wednesday that the industry needed to confront public scepticism if it were to be able to build the "houses and towns" of tomorrow.

Planning Minister Anthony Roberts. Credit:Janie Barrett

In making this argument, Mr Roberts tried to reconcile the government's position last year - that it needed to increase housing supply to reduce pressure on prices - with its current position - that a migration slowdown is needed.

"Whereas last year, we said quite clearly and plainly that the only meaningful housing affordability measure was to increase supply, the public debate, the political debate, has jumped to an admittedly logical conclusion that an alternative policy is to not have so many people to house, feed, move and keep safe," Mr Roberts said.