But one of the 13 affected local authorities continues to push back against the changes, arguing they would be "highly destructive" to the leafy Sydney neighbourhood.
Train stations at Belmore, Lakemba and Punchbowl in southwestern Sydney, Cardiff and Cockle Creek in Newcastle's west and Woy Woy on the Central Coast have been added to existing plans to build near 31 transport corridors.
The density of dwellings within 400 metres of the stops would be dramatically upgraded as part of a bid to tackle the state's housing crisis and quell an exodus of younger residents.
Premier Chris Minns says the reforms - which involve the largest rezoning of land in Sydney's history - would deliver more than 170,000 homes across the city and the Illawarra, Hunter and Central Coast regions over the next 15 years.
"(We're) removing the blockage from the government and that's been one of the leading reasons why the pipe has been blocked when it comes to new development," he told reporters on Friday.Â
"If we don't build more houses, young people will up and leave because they can't afford a home ... and if we lose our young people, we lose our future."
Chris Minns says major planning reforms would deliver 170,000 new homes. (Bianca De Marchi/AAP PHOTOS)
The additions came after several local councils put forward their own suggestions for sites to be fast-tracked for development, he added.
The policy was announced in December as part of broader planning changes designed to add much-needed housing stock in Sydney and surrounds.
All but one of the 13 affected councils had engaged with the planning department to develop schemes to deliver more housing, the state government said.
Ku-ring-gai Council, which covers a swathe of Sydney's north shore and has four train stations covered by the plans, has not done so.
Its councillors voted unanimously in February to reject the proposed changes due to their impact on infrastructure and heritage properties, among other issues.
But Mr Minns said the council area had been assessed as having capacity for extra homes and had a responsibility to do its part.
"We can't be in a situation where the 12 other councils negotiated with the NSW government in good faith to get greater density in their communities and one council says we don't want anything, refuses to meet (and) gets a free pass," he said.
Planning Minister Paul Scully said the area had already benefited from significant transport investment in recent issues.
"That investment also comes with a responsibility to assist with the housing challenge and confronting the housing crisis," he said.
Ku-ring-gai Council has been contacted for comment.
Opposition planning spokesman Scott Farlow said the government had failed to prove the expansion will be supported by adequate infrastructure.
"For those 37 sites, there is not one dollar which that government has put forward to be able to supply additional school infrastructure, additional transport infrastructure, or additional public open space," he said.
