Supply constraints and rising costs prompt push for a coordinated plan
A dedicated national housing plan is being sought to address worsening housing supply pressures outside Australia’s capital cities, with industry representatives warning that current policy settings are not working for regional communities.
The call was made after leaders and stakeholders discussed housing constraints in Nowra at a Housing Industry Association (HIA)-hosted regional housing roundtable, which drew local builders, developers and regional figures from the Shoalhaven. Senator Andrew Bragg, shadow minister for housing and homelessness, and Christopher Rath, NSW shadow minister for planning and public spaces, housing, cities, the arts, and the Illawarra and South Coast, also attended.
According to Simon Croft (pictured top), chief executive of industry and policy at the Housing Industry Association, demand in regional centres such as Nowra was increasing faster than the construction system could respond.
“Strong population growth in the Shoalhaven is being driven by people seeking affordability, lifestyle and employment opportunities outside major capitals,”Croft said. “However, the roundtable highlighted that housing supply is simply not keeping pace with demand, and the current one‑size‑fits‑all approach to housing policy is not working for regional Australia.”
Participants pointed to the effects of sustained shortages, including limited rental availability, rising rents and house prices, and affordability pressures that are increasingly out of step with local wages.
“Essential workers are struggling to secure rental accommodation, young people are being priced out of their own communities, and local businesses are finding it harder to attract staff because people cannot find a place to live.”
Builders and developers identified higher construction and finance costs, labour shortages, fragmented planning systems and protracted approval timeframes as factors limiting new housing delivery in the region.
“Regional New South Wales is absorbing a significant share of Australia’s population growth, yet housing policy and investment remain heavily skewed towards capital cities,” Croft said. “This disconnect is exacerbating affordability pressures in regional communities and weakening the capacity of the construction sector to deliver at the scale and speed required.”
He noted that the discussion reinforced the need for a coordinated national response that treats housing as essential infrastructure, particularly in areas absorbing population and workforce growth.
“Housing must be treated as essential economic and social infrastructure, particularly in regions that are supporting population growth and workforce expansion,” Croft said. “A dedicated national housing plan must set place‑based targets for regional areas, support housing supply beyond capital cities, reduce barriers constraining construction productivity, and better align housing investment with infrastructure, health, education and workforce planning.
“If governments want people to live and work in regions like the Shoalhaven, housing policy must reflect regional realities and support a construction sector that can efficiently deliver homes where they are needed.”
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