Housing prices impacting jobs

The affordable housing shortage in regional Australia is blowing an economic hole in local economies worth hundreds of millions of dollars, as employers struggle to attract staff due to low vacancy rates and skyrocketing rents according to one lobby group.

A special impact economics analysis of five regional economies commissioned by Everybody’s Home for the jobs summit explores the connection between increased rents, low vacancy rates and unfilled job vacancies.

The study examined the Queensland Sunshine Coast, NSW South Coast, Launceston-North East Tasmania, SA Fleurieu Peninsula and Geelong/Surf Coast in Victoria.

It found that the shortage of affordable housing in these communities is undermining the capacity of employers to attract staff.

The study showed that the increase in rent since March 2020 for Geelong and the Surf Coast was 17 per cent citing that 26 per cent of low income households are experiencing severe rental stress.

It also showed that there was an increase in job vacancies for the same period of 133 per cent which contributed to lost economic output of $760 million.

National spokesperson for the Everybody’s Home campaign, Kate Colvin, said that the lack of affordable housing in regional Australia is more than a social crisis.

“It’s now a deep economic crisis as well,” she said.

“The inability to find a rental, and eye watering rent increases for the few places available is deterring people from taking up jobs in regional communities.

“Employers tell us constantly that prospective employees tell them they can’t move to the community if they can’t find a place to live.

“Our completely lopsided housing system is choking off the economic potential of regional Australia.”

Everybody’s Home advocated for the connection between housing and jobs needs to be at the very top of the agenda at last week’s employment summit.

Ms Colvin said that expanding social and affordable housing by building an additional 25,000 new dwellings per year would give people on modest incomes more choice.

“It would relieve serious pressure on our housing system and give regional communities the chance to flourish economically,” she said.

“We need a better balanced housing system that supports social inclusion and fosters economic growth as the housing needs of Australian workers warrant serious attention at the employment summit.”