Rental ‘crisis’ in the Sunshine Coast, Geelong, Launceston and Illawarra costs Australia billions

It’s no secret that rents have been skyrocketing across the country leaving many in desperate situations, but it’s also contributing to another crisis.

Skyrocketing rents, which have soared as much as 48 per cent in some parts of Australia in the past two years, are “blowing an economic hole” in the country with billions lost from a lack of affordable housing.

A new report has revealed that the housing shortage gripping regional Australia is hitting employers hard who are struggling to find staff, with the crisis causing employees to be priced out of areas.

Some of the worst-hit regions include South Australia’s Fleurieu Peninsula where rents have increased by 48 per cent since March 2020, while job vacancies have soared to 119 per cent, costing the local economy $201 million.

It’s having an even bigger impact on the Sunshine Coast in Queensland which has seen rents rise by 36 per cent, with available jobs jumping 259 per cent from 1415 positions to 3678.

This has cost the region $786 million per year, the research for campaign group Everybody’s Home found.

The Fleurieu Peninsula has 932 available jobs, up 119 per cent compared to two years ago. Picture: Carly Kruger/Tourism SA

In NSW, the Illawarra and south coast have seen rents increase by 41 per cent but job vacancies have risen from 1333 to 2848, causing $642 million in losses for the region per year.

“The chronic lack of affordable housing in regional Australia’s community is more than a social crisis. It’s now a deep economic crisis as well,” Kate Colvin, national spokeswoman for the Everybody’s Home campaign, 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. The connection between housing and jobs needs to be at the very top of the agenda for the employment summit next week.”

Kate Colvin says: ‘Our completely lopsided housing system is choking off the economic potential of regional Australia’. Picture: Supplied

The report’s release comes ahead of the Government’s jobs and skills summit, which is being held next week, and showed that while migration and female participation are crucial factors for Australia’s worker shortage, the high cost of housing is also key.

“A well-functioning labour market requires labour mobility, where workers can move from one region to another to fill gaps,” the report said.

“A lack of affordable and secure housing options limits the ability of workers to easily move between regions and undermines the efficiency of the labour market. The crisis in our rental market is not only producing large rent increases in regional areas, but it is also impacting labour mobility.”

Sunshine Coast rents have gone up by 36 per cent in the last two years. Picture: Brett Wortman/Sunshine Coast Daily

In Geelong, rents rose 17 per cent in the past year, while job vacancies soared from 1454 in March 2020 to 3401, costing the area $760 million, the research revealed.

Meanwhile in Launceston rents shot up 21 per cent, yet available jobs rose by 129 per cent, with the vacancies causing a $201 million loss for the area.

In Geelong rents have gone up 17 per cent while job vacancies had more than doubled to 3400 now available. Picture: Supplied

Ms Colvin called for an additional 25,000 new social and affordable housing per year to 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. The housing needs of Australian workers warrant serious attention at the employment summit.”