Local councils join forces

February 21, 2026 BY
Regional SA housing supply

Mount Gambier Mayor Lynette Martin

THE Limestone Coast based councils have joined South Australia’s regional Local Government Associations (LGAs) are collectively calling for action from State and Federal Government to address the barriers facing housing supply in the regions.

While welcoming the State and Commonwealth Governments recent announcement to unlock housing in metropolitan SA, regional councils are urging coordinated action across all levels of government to address the specific challenges faced in the regions.

Regional councils across South Australia are ready to be active partners in delivering new housing, supporting population growth and strengthening regional communities.

However, for national housing initiatives to succeed outside metropolitan areas, they must be designed and delivered with regional conditions in mind.

South Australia has the largest dichotomy of population between capital city and regions, with no satellite cities of comparable size to other Australian states, resulting in less economies of scale for service, program, and infrastructure delivery.

At the same time South Australia’s regions are a vital part of our state’s identity, and a key driver of economic prosperity. Strategic population growth in South Australia must include initiatives to reduce barriers to increasing housing supply in the regions.

Housing supply constraints in regional South Australia are not driven by demand alone. Councils are contending with limited enabling infrastructure, workforce shortages, higher construction costs, constrained access to finance for smaller-scale developments, code amendment timeframes and planning and servicing challenges unique to regional and remote communities.

Without targeted solutions, national housing targets risk being difficult to achieve in regional areas.

Limestone Coast Local Government Association chair, Mount Gambier Mayor Lynette Martin, said there was significant potential to grow our regional population, alleviating pressure on Greater Adelaide and providing a workforce essential to leveraging economic opportunities in regional South Australia.

“Limestone Coast Councils stand ready to work with State and Federal governments on regional policy, programs, delivery and investment models, that support investment in fit-for-purpose diversified housing across the region,” she said.

Local government plays a critical role in housing delivery through land use planning, infrastructure provision, local approvals and community engagement.

Regional councils are already facilitating growth by zoning land, investing in essential infrastructure, supporting infill and greenfield developments, and working with state agencies and the private sector to unlock housing opportunities.

A strong housing response must also be aligned with broader regional development priorities, including water and energy security, transport connectivity, childcare and health services, and workforce attraction.

Housing supply cannot be considered in isolation from the liveability and economic sustainability of regional communities.

The combined regional LGAs of South Australia are calling on the State and Commonwealth Governments to ensure housing initiatives are flexible, place-based and appropriately funded, with direct recognition of the role of local government.

This includes investment in enabling infrastructure, support for regional construction capacity, and funding models that reflect the higher per-dwelling costs faced in non-metropolitan areas.

Regional South Australia stands ready to work with the Commonwealth and State Governments to deliver housing outcomes that are practical, sustainable and responsive to local needs.

With the right settings, regional areas can play a significant role in meeting national housing objectives while supporting long-term growth across the state.