MAJOR regional housing indicators have highlighted a need for increased housing in regional communities, as the demand increased significantly in the sector.
With median housing prices now tipping $605,000 in regional areas, figures that closely resonate with the metro market three years ago, it has raised concerns as house prices skyrocket to record levels.
Regional Australia Institute (RAI) chief executive, Liz Ritchie said as the demand for regional migration increases, the National Regional Housing Summit has continued to develop bespoke solutions to support the region’s burgeoning communities.
“Regional housing must be a priority, as it is putting a handbrake on our nation’s growth and prosperity,” she said.
“Our regions are gearing up to be the ‘engine room’ of the nation’s transition to net zero – however, housing will be the key barrier to this growth.”
Between March 2020 and December 2023, the median value of dwellings in capitals increased by 29.3 per cent from $643,540 to $832,193, while in regional Australia it grew by 54.2 per cent, increasing from $392,802 to $605,780.
“While it is still more affordable to buy in the regions, for now, there is no third option if locals or metro-movers are priced out of the market, and supply fails to meet demand,” Ms Ritchie said.
Analysis by the RAI has found flats or apartments make up just two to three per cent of the total housing stock in some regional markets, compared to more than 42 per cent in metro regions.
Ms Richie also said that efficient preparation is required to accommodate for increasing regional populations.
“We need to plan for, invest in, and facilitate regional growth because more people want to move to regional Australia, up to 3.5 million in fact,” she said.
“But as a nation we’re not prepared for this changing shift in population.
“Thousands of jobs are on offer in our regional communities and to help fill those positions, we need more diverse housing options available.
“As regional Australia develops, so too must its housing stock.”
The Real Estate Institute of Australia (REIA) chief executive, Anna Neelagama said in high growth areas, it is imperative for immediate and rapid action to be taken to reduce the current pressures on housing.
“We know the problem is a lack of supply,” she said.
“It’s now time to move forward to specific solutions and put delivering them in the hands of our regional communities.
“These communities need at scale injections of funds in areas of high growth to build more houses and better use any existing empty houses across our regions.”
Master Builders Australia (MBA) chief executive, Denita Wawn said to achieve sustainable growth in regional communities, all levels of government needed to collaborate on removing the biggest roadblocks – zoning, planning and integrated land use.
“As regional communities grow into bigger hubs of activity, the type of housing on offer needs to satisfy the needs of everyone in that community,” she said.
“It’s not always about building out but building up with appropriate infrastructure and services in place.
“However, the industry’s capacity needs to be bolstered in the regions to ensure supply can keep up with demand.”
“Governments need to look at how we can ensure the regions are an attractive place for businesses to expand into and workers to move to.”
The regional vacancy rate decreased from 1.5 per cent in September 2022 to 1.2 per cent in September 2023, while monthly regional building approvals have been decreasing since August 2021.
The RAI’s Regionalisation Ambition demonstrates a 10-year, 20-goal framework for Australia to accommodate the increasing rate of regional residents.
The plan aims to see by 2032, the regional rental vacancy rate increase to above three per cent and for annual building approvals to keep pace with population growth.
