Urgent call for national approach to regional housing

A regional housing roundtable has warned that current housing policy settings are failing regional communities.

And it is calling for a dedicated national housing plan to address mounting supply pressures beyond Australia’s capital cities.

Held in Nowra by the Housing Industry Association, the discussions made clear that housing demand in regional centres such as Nowra is accelerating faster than the construction system can respond.

“Strong population growth in the Shoalhaven is being driven by people seeking affordability, lifestyle and employment opportunities outside major capitals,” Simon Croft, HIA Chief Executive, Industry and Policy, 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 at the roundtable detailed the real‑world consequences of ongoing housing shortages, including severe rental constraints, rapidly rising rents and house prices that are increasingly disconnected from 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,” Croft said.

Builders and developers outlined the compounding pressures limiting new housing delivery in the region, including rising construction and finance costs, ongoing labour shortages, fragmented planning systems and lengthy approval delays that continue to undermine productivity.

“Regional NSW 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.”

Croft said the roundtable reinforced the need for a long‑term, coordinated national response that recognises the distinct challenges facing regional, rural and coastal communities.

“Housing must be treated as essential economic and social infrastructure, particularly in regions that are supporting population growth and workforce expansion,” he 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.”