November 20th 2024.
Around 40 percent of people living in cities are considering moving to regional areas in Australia, but the demand for housing is far surpassing the available supply. This alarming issue was highlighted in a recent report released by the Regional Australia Institute, which revealed that the number of Australians planning to relocate outside of major cities has doubled in the past 18 months.
Liz Ritchie, CEO of RAI, expressed concern about the current state of regional areas, stating that Australia is undergoing a significant population shift and it is crucial to monitor key factors such as housing, education, and migration. She emphasized that while the demand for regional living is at an all-time high, the necessary resources and infrastructure are not being adequately provided to support this shift.
The report also highlighted the tight rental market in regional Australia, with vacancy rates reaching a record low of 1.3 percent in 2024. Additionally, building approvals have decreased by 9.4 percent between May 2023 and May 2024, further exacerbating the housing shortage.
Jacinta Reddan, CEO of Advance Cairns, noted that the population in Far North Queensland has grown by 5.2 percent in the past five years, exceeding government projections. She predicts that if this trend continues, the region will have over 280,000 residents by 2026. However, this growth is placing strain on the rental market, with vacancy rates remaining consistently low for the past 50 months.
Apart from housing, regional areas are also facing challenges in the education sector. The report found a decline in the regional student school attainment rate and a significant number of students in remote areas requiring additional support for NAPLAN exams.
Ritchie also expressed concern about the decline in overseas migrants settling in regional areas. With over 76,000 jobs currently available in regional Australia, she stressed the importance of attracting migrants to fill these positions.
In conclusion, the report highlights the urgent need for policymakers to take swift action in addressing the housing shortage, providing necessary resources and infrastructure, and attracting more migrants to regional areas. Failure to do so could result in further strain on the regions and their ability to accommodate the population shift.
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