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Housing crisis intensifies across regional NSW

Housing pressures in regional New South Wales have reached critical levels as builders struggle to meet growing demand amid significant challenges in the construction industry.

According to the Housing Industry Association (HIA), regional areas are facing mounting difficulties with workforce shortages, planning delays, and insufficient infrastructure, all of which are hampering new housing supply.

At the Regional Housing Roundtable in Taree, hosted with Nationals Senator Bridget McKenzie and Member for Lyne Alison Penfold, local builders and industry leaders are discussing these pressing issues.

HIA Executive Director Hunter, Craig Jennion, highlighted that housing affordability and supply challenges are no longer confined to metropolitan areas.

“Housing affordability and supply are no longer just city problems they’re biting hard across regional Australia,” Mr Jennion said.

The migration trend toward regional living has intensified the situation.

HIA’s Housing the Regions report reveals that regional NSW accounted for 42 per cent of all net migration inflows in 2024, demonstrating a significant shift of people leaving cities for regional areas.

Despite this influx, communities like Taree on the Mid North Coast are experiencing worsening shortages in both skilled trades and affordable homes.

Local builders report significant delays in project approvals, persistently high material costs, and difficulties finding qualified tradespeople.

“Local builders report that project approvals can take many months, material costs remain high and finding qualified trades is a constant challenge, particularly for carpentry, bricklaying and electrical work,” Mr Jennion said.

The construction industry is calling for coordinated government action to address these challenges. 

The HIA’s Housing the Regions report urges national and state governments to prioritise planning reform, accelerate land release, and implement training initiatives to support regional growth.

These measures are seen as essential for enabling regional communities to fulfil their potential in addressing Australia’s housing shortage. 

With appropriate policy interventions, regional centres could play a crucial role in meeting national housing targets.

Mr Jennion said regional communities are ready to contribute to solving the housing crisis.

“Regional communities like Taree are ready to grow, but they need the right support from government,” he said.

The situation in Taree reflects broader challenges across regional Australia, where population growth has outpaced housing development, creating pressure on existing infrastructure and services.

Industry experts suggest that targeted investment in regional infrastructure, streamlined approval processes, and incentives for skilled workers to relocate to regional areas could help alleviate the current bottlenecks in housing supply.

“Regional NSW has a major role to play in meeting the nation’s housing targets. With the right policy focus, towns like Taree can be at the forefront of Australia’s housing recovery,” Mr Jennion said.

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.