A plan to build 18 units in a two-storey social housing complex in Forbes has been given approval.

Homes NSW has confirmed - with letters to residents - that a proposal to demolish two existing dwellings to build one and two-bedroom units has been given final approval.

A spokesperson for Homes NSW said the department continued work to deliver new social housing in Forbes as part of the NSW Government’s efforts to build more homes in regional areas for people who need them most.

Waiting times for a one-bedroom social housing property in Forbes for general applicants are two to five years, according to the Department of Communities and Justice website this week.

For two-bedroom properties that wait time extends to five to 10 years.

"This development will help ensure more people in the Forbes community have access to safe, secure, and fit-for-purpose housing," the spokesperson said.

"The approved redevelopment at Oxford and Hill Streets will replace ageing properties with modern, well-designed homes that better support the needs of singles and couples in the local community.

"Following consultation with the community, the number of homes in the development has been reduced to 18 to address concerns.

"The project is now progressing to the next stage, with demolition underway and preparations continuing for construction to begin later this year."

Work will begin in April with demolition of the existing two dwellings, and the property will include 13 on-site car spaces as well as landscaping and fencing.