IN RECENT years, Hervey Bay, has become a focal point for a significant and concerning shift within the Australian property market. This change has been most profoundly felt in the realm of housing affordability, a crisis precipitated by a perfect storm of economic and social factors that have reshaped the landscape of regional living.
Since the onset of the COVID-19 pandemic, there has been a notable migration pattern, with a significant influx of individuals and families moving to regional areas such as Hervey Bay.
This surge in demand, coupled with limited housing supply, has led to a significant rise in house prices—up to 75% over the past three years. This sharp increase has not only made home ownership less attainable for many Australians but has also severely tightened the rental market, driving vacancy rates down to below 1%.
The rental market’s strain is further exacerbated by significant rent increases, a direct result of the soaring house prices. This situation has effectively sidelined investors, particularly during the pandemic, as owner-occupiers have come to dominate the market.
Additionally, the region has faced massive delays in building and land supply, contributing to the already critical housing shortage.
President for the Fraser Coast Property Industry Association (FCPIA), Glen Winney, says it’s a number of factors that need to be considered when reviewing the current situation.
“This confluence of factors has culminated in a dire housing affordability crisis in Hervey Bay. To navigate our way out of this predicament, a multi-faceted approach is required”, says Mr Winney.
“A key component of the solution lies in making investment in the housing market more attractive once again. This involves not only incentivising investors to return but also revisiting and potentially revising regulations surrounding housing development.”
“Exploring alternative housing products is crucial. Increasing housing density and simplifying the development process are steps in the right direction. These measures would not only expedite the provision of new homes but also offer more varied housing options to meet the diverse needs of the community.”
Addressing the housing affordability crisis in Hervey Bay requires concerted efforts from all stakeholders, including government bodies, developers, investors, and the community.
By embracing innovative solutions and fostering a more inviting investment climate, Hervey Bay can begin to alleviate the pressures of this crisis, paving the way for a more sustainable and inclusive future in housing.
