
A new study by the Australian Housing and Urban Research Institute (AHURI) has revealed significant challenges in supplying affordable housing in rural and regional Australia, with some issues more severe than those faced in metropolitan areas.
The research, titled “Disruption in regional housing: Policy responses for more resilient markets,” was conducted by researchers from the University of South Australia, University of Adelaide, and Royal Melbourne Institute of Technology.
Key findings include:
- Regional housing markets face more adverse conditions due to smaller scale, difficulties in sourcing local labour, limited builders, and higher costs from distant suppliers.
- The shortage of skilled workers is the greatest challenge to building new housing in regional Australia.
- Planning permission was not considered a significant impediment in most regional housing markets.
Professor Andrew Beer from the University of South Australia said: “Our research surveyed regional and rural local governments and not-for-profit housing providers to understand the trends impacting regional development. Sixty per cent of respondents identified resource impediments, such as workforce shortages and shortages of land for development, as the top barrier to delivering affordable housing supply in their areas.”
The study suggests that government action may be necessary to unlock affordable housing supply in rural and regional markets. Recommendations include:
- A guaranteed program of ongoing work and new builds, possibly funded through the Commonwealth Government’s Housing Affordability Future Fund, to attract and retain labour.
- Developing a national urban and regional strategy to provide certainty for long-term private investment in housing.
- Allowing regional housing providers to access the Housing Affordability Future Fund to build additional dwellings.
The research also found that housing markets in different types of regions are becoming increasingly diverse, suggesting that “one size fits all” solutions are unlikely to be effective.
Professor Beer concluded: “Overall, we found that relatively small public sector interventions are likely to deliver substantial benefits to future generations of regional and rural residents. In many ways, the most pressing need is for the creation of an institutional architecture that would include local housing providers, construction-related training providers and enhanced supply chains so as to support the growth of both market and non-market housing.”