Homebuyers living outside of Australia’s cities in search of affordable property will be waiting almost ten years to afford a home, says a new report.
The federal government’s 2024 State of Australia’s Regions report showed that despite regional areas showing improvements in job growth and critical infrastructure builds, the nation’s housing squeeze weighed heavy on Aussies everywhere.
With all regions experiencing dramatic population growth over the 2021/22 period, the time to save for a house deposit skyrocketed to 9.7 years in September, up from an average of 7.2 years only four years prior.
The latest figure puts the regional housing markets only slightly below those in capital cities, where it takes ten years to save for a deposit.
“This likely reflects consumer preferences of Australians post-pandemic, following the increased opportunity for remote working,” the report said.
In that same time frame, the average personal income for Australians only rose by 4.9 per cent up to $54,890 a year.
With the average asking price for a regional home creeping up to $605,085, prospective home buyers would be looking to save around $121,000 for their initial 20 per cent deposit.
Infrastructure, Transport, Regional Development and Local Government Minister Catherine King says the report will help the government make informed choices to help regional communities and respond to what the people are saying.
“Supporting strong, secure and sustainable regions is a high priority of the Australian Government,” she said.
“That is why we are launching this new report, which will contribute to informing how we can collectively build strong, sustainable and welcoming regional communities that all Australians can call home.”
Regional workers in high demand
Thanks to this fatal cocktail of rapid population growth, soaring house prices and rising interest rates, livability in regional areas has taken a nosedive, and employers are struggling to fill long-vacant positions.
As a result, tradies are in high demand in the regional centre, with many desperately hunting for engineers and mechanics in particular.
“Recruitment difficulty may reflect challenges in attracting, or accommodating, workers to move to and live in the region, or a shortage of workers with the right skills for the jobs available,” the report said.
This isn’t good news for the nation’s renewable energy targets, as government officials look to regional areas to become the centre of the energy transition and produce 213,000 jobs by 2033.
Job vacancies in regional areas have reportedly more than doubled in the four years to October.
The housing squeeze has also led to a shortage of trained medical professionals, which has lowered the life expectancy in country areas.
Federal Regional Development Minister Kristy McBain said the Labor government wanted the regions to be thriving places where people can pursue a variety of jobs.
“As communities outside of our big cities grow, it’s more important than ever that regional people have access to reliable, fit-for-purpose services in their own backyard – from education, health and connectivity,” Ms McBain said.
“This report provides us with valuable insights into the challenges and opportunities in our regions and will help ensure that our investments continue to target local priorities.”
