Regional housing crisis deepens as city dwellers eye tree change

Regional housing pressures have intensified as the number of city residents considering a move to regional areas has doubled in the past 18 months, according to new data from the Regional Australia Institute.

Regional house prices have surged 54.2 per cent from March 2020 to December 2023, significantly outpacing the 29.3 per cent rise in urban centres.

Real Estate Institute of Australia (REIA) president Leanne Pilkington said regional rental markets remained under severe pressure.

“The persistently low regional rental vacancy rates, which remain well below the three per cent threshold for balanced rental markets, highlight the ongoing housing supply challenges in these areas,” she said.

The REIA partnered with industry groups to host the National Regional Housing Summit in Canberra this year, attracting nearly 300 delegates to address the crisis.

Pilkington said regional areas needed tailored solutions rather than one-size-fits-all approaches.

“Key messages from the Summit included the need for long-term, systemic thinking, increased infrastructure investment, and enhanced collaboration across all levels of government and stakeholders,” she said.

The REIA has called for governments to stimulate regional rental markets and boost social housing investment.

Pilkington criticized the lack of specific regional funding in recent federal housing initiatives.

“This is concerning given that the rental and acute housing crises are most pronounced in regional Australia,” she said.

“A thriving regional Australia is vital to the nation’s overall success so addressing these challenges requires a unified and immediate response from all stakeholders.”