In the face of soaring living costs, a growing number of urban residents are contemplating a shift to regional areas in search of affordable and comfortable lifestyles.
However, experts warn that accommodating a larger population requires comprehensive long-term planning to avoid replicating the housing problems of major cities.
Dr Laura Crommelin, a senior lecturer in city planning at UNSW Arts, Design and Architecture, emphasises the need for realistic expectations regarding the role of smaller regional cities in solving housing crises.
“Our major cities continue to offer a broader range of employment opportunities, which means they will continue to attract new residents,” she said.
“So, it’s unlikely smaller regional areas can substantially ease pressures for major cities, at least in the short-term.
“And in any case, we’re seeing that rapid growth without proper planning can replicate some of the problems we face in urban areas in regional areas, such as housing affordability.
“So we risk losing features of regional life that are often what attract people to move in the first place.”
While some remote inland areas in Australia have experienced population decline, others are struggling to cope with an influx of migrants and the rise of remote work.
Coastal regions, in particular, have witnessed a significant surge in sea-changers who seek the affordability and spaciousness of housing offered near the beach while still commuting to the city for work.
Dr Crommelin said regional rental markets already faced several challenges with demand for affordable properties is already exceptionally high.
“Housing affordability is a significant issue now in regional areas that are growing quickly,” she said.
“If people moving out from the big cities can come in with higher paying salaries and push prices up, it can create resentment.”
An Australian Housing and Urban Research Institute (AHURI) study, led by Dr Crommelin, found that regional residents are concerned about growth negatively impacting their lifestyle and straining essential services like health and education.
“There is a concern that rapid growth outpaces investment and places more pressure on existing services – particularly health and education,” she said.
“It’s something policymakers need to anticipate and get ahead of so that infrastructure development can support growth, not just follow it.”
Instead of viewing regional areas as a solution to metropolitan population pressures, Dr Crommelin said policymakers should focus on how population growth can benefit regional Australia.
“Proactive, strategic planning informed by local knowledge can ensure population growth benefits regional cities and their residents first through improved local services, infrastructure, and amenity,” she said.
One crucial aspect is enhancing regional labor markets to attract and retain more population, especially in fields with worker shortages.
“Reduced employment and career development options are considered a downside of relocating,” Dr Crommelin said.
“There’s certainly a role for regional universities and campuses to help create local graduates, but how best to help them build a fulfilling career in non-metropolitan Australia is something we’re interested in looking into further.”
Dr Crommelin said long-term management strategies should also acknowledge the diversity and unique needs of different regions.
“Most importantly, growth needs careful management to ensure if regional Australia areas scale up, they maintain the overarching sense of community that make these areas appealing in the first place,” she said.
To address these challenges, a new AHURI project, led by Dr Crommelin, titled Disruption in Regional Housing: Policy Responses for More Resilient Markets, will examine government actions needed to ensure the resilience of Australia’s regional housing markets in the face of present and future challenges.
