High-Rise Development Aims to Alleviate Housing Shortage in Rural Areas
Not everyone relocating to regional Australia desires a traditional rural lifestyle—they definitely aren’t interested in owning a sheep or two.
Experts have suggested that developers should focus on building more medium-density housing in these areas, as the population in the countryside is growing and the demand for more workers is escalating.
At a national summit on regional housing in Canberra on February 9, Master Builders Australia chief executive Denita Wawn mentioned that professionals looking to move to the country are seeking urban-style living.
She emphasized the need to incentivize and encourage investors to consider constructing medium to high-rise properties as an alternative to detached houses with large gardens.
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The summit, hosted by the Regional Australia Institute, highlighted the urgent solutions needed for the severe shortages in rural areas, where more health workers, carers, engineers, and teachers are required.
The institute’s analysis indicates that house prices in these regions are reaching record levels, with median values exceeding $605,000 (US$395,000), thereby approaching those of the urban market.
Rental vacancies are declining, dropping to 1.2 percent in September, while the countryside has welcomed 166,000 new residents in recent years.
Shepparton, a community north of Melbourne, initiated a program to assist 600 professionals in moving from the city, but housing shortages presented a major obstacle to its success.
Linda Nieuwenhuizen, chief executive of the Committee for Greater Shepparton, noted the challenges faced by school teachers temporarily housed in caravans and health specialists sharing houses, which increased their likelihood of relocating back to an urban area.
Instead of waiting for housing policy changes, many regional communities are proactively approaching their own solutions.
In Dubbo, the first high-rise residential building in western New South Wales (NSW) is being constructed by local developers, featuring 80 apartments across 15 floors.
The institute’s chief economist, Kim Houghton, emphasized that investors need to recognize the value of mixed-density housing, which has a high demand among older individuals downsizing and young professionals seeking residential properties in regional areas.
Among the solutions proposed at the summit is the investigation by councils in central west NSW into renting out an estimated 25,000 spare rooms in the region.
The institute is also advocating for 40 percent of the federal government’s $10 billion (US$6.5 billion) Housing Australia Future Fund, established to increase social and affordable housing, to be directed to rural areas.
Helen Haines, the Independent MP for Indi, called for the establishment of a regional housing infrastructure fund to address the record levels of homelessness in her rural Victorian electorate.
Anglicare executive director Kasy Chambers lamented that regional housing is no more affordable than urban areas, highlighting the financial difficulties faced by individuals in dealing with high housing costs, which often impact their ability to afford necessities and avoid the risk of homelessness.
