URGENT UPDATE: A landmark report released today reveals a severe housing crisis in regional Australia, significantly impacting essential services. The Regional Australia Institute warns that traditional country houses are stalling growth and exacerbating a worsening housing shortage.
New data shows that by the end of 2024, 48,570 housing approvals were granted in regional areas, despite a booming population increase of over 117,000 in 2023. With rental vacancy rates plummeting to just 1.7%, the demand for housing is skyrocketing, leading to a staggering 62% rise in regional house prices over the past five years.
The report, titled Answering the Call for Regional Housing, highlights the lack of diverse housing options in country towns, which is critical for accommodating key workers such as doctors and teachers. Liz Ritchie, CEO of the institute, stated, “The focus of the national housing debate must shift towards increased housing construction in regional Australia.”
The report emphasizes that inadequate attention from national and state governments to regional housing issues has created persistent barriers in planning and infrastructure delivery. “Without a significant step-up in housing supply in the regions, our communities will struggle to attract and retain workers, deliver services, and grow economically,” Ritchie added.
In response to this crisis, the institute is calling for the construction of 480,000 homes outside major cities as part of the National Housing Accord, which aims to build 1.2 million homes over five years. The report suggests establishing regional housing agencies and appointing a federal regional housing commissioner to address these challenges effectively.
As the housing affordability advantage in regional areas continues to diminish, the need for immediate action is critical. The lack of housing diversity threatens not only economic growth but also the well-being of vulnerable communities.
WHAT’S NEXT? Authorities must prioritize the development of multi-complex dwellings and provide targeted funding to support key worker housing. The regional housing crisis is not just a statistic; it’s a pressing issue that impacts the lives of families and workers striving to live and work in their communities.
This report serves as a call to action for both state and federal governments, urging them to rethink their strategies and invest in the future of regional Australia. The time for change is now, as communities wait for solutions to this urgent housing problem.
