Regional Australia Institute’s latest housing report offers solutions to growing crisis in Toowoomba

Falling into the category of a growth zone, a new report by the Regional Australia Institute has identified solutions to Toowoomba’s housing crisis.

A report into regional housing has identified Toowoomba as one of 87 local government areas considered a growth zone, with planning and affordability two of the key issues facing the housing market.

The Regional Australia Institute’s Foundations of Regional Housing report broke the nation’s housing markets into six clusters, with the Toowoomba LGA falling under the category of growth zone.

Characterised by a more affordable housing market around large metropolitan areas that have grown steadily, the report found house sales in growth zone LGAs have grown steadily over the past 20 years.

“The majority of the 87 LGAs in this cluster are in and around the major capital cities,” the report found.

“These are the largest LGAs in the analysis, with an average population of 134,447 residents. Local housing markets in these LGAs are the second most expensive in the nation, after Cluster 6, with an average home sales value of $629,939. They are characterised by moderate rents, high proportion of renters, and moderate development activity.”

In terms of policy response to Toowoomba’s housing crisis, the Regional Australia Institute report found the challenges facing growth zone LGAs centred on planning for growth, and maintaining affordable housing for low-income, long term residents and key workers.

“Lower-income key workers, such as those in health and hospitality workers, can often be priced out of these markets,” the report warned.

“While more local land might be zoned as residential, state and local policy makers should consider policies that activate this land to be development ready.

“Local and state policy makers and local industry participants should also consider infill and brownfield sites that can be redeveloped into medium to higher density housing. Policymakers should also consider how to encourage a greater share of greenfield development that is medium to higher density dwelling construction.

“Ensuring this diversity in the local housing mix is especially important for affordability for key workers.”

Overall, the report found regional housing markets were being put under stress by a surge in popularity of areas outside the major capital cities, with regional Australia’s population exploding by 76,500 people per year in the decade to 2020.

As a result, regional housing was often unaffordable in particular for low-income earners.

“Researchers concluded that regional housing markets are not served well by current policy settings, especially those of the senior two levels of government,” the report stated.

“Regional housing markets are troubled by limited new housing supply as a result of inadequacies in the planning system, variable and small-scale demand over time, long supply chains and the absence of economies of scale.

“The result … is that regional housing is often unaffordable in particular for low-income earners. The challenges in regional housing are also potentially an impediment to economic growth.”