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Fixing Australia's housing shortage crisis will remove a major barrier standing between the federal government and its transition to net zero by 2050 plans.
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While a lack of suitable accommodation is also "putting a handbrake on our nation's growth and prosperity", according to Regional Australia Institute chief executive Liz Ritchie speaking ahead of Friday's RAI National Regional Housing Summit in Canberra.
The parlous situation has impacted all areas of regional economies in recent years.
Farmers, for example, have even been forced to source dongas and relocatable homes to house workers due to the lack of established housing and shortage of building materials that has wreaked havoc across the construction industry.
The rush of tree changers from metropolitan areas to the regions during the Covid-era is underlined in data showing that between March 2020 and December 2023 the median value of dwellings in capital cities rose from $643,540 to $832,193, or 29 per cent.
While in regional Australia the median value increased from $392,802 to $605,780, a 54 per cent jump.
The situation has forced all levels of government to target the problem with a suite of plans and funding packages, headlined by the $10 billion Housing Australia Future Fund to create an ongoing pipeline of funding for social and affordable rental housing.
![Regional Australia Institute chief executive Liz Ritchie helps inform governments on where infrastructure needs to be built or improved. Picture by supplied. Regional Australia Institute chief executive Liz Ritchie helps inform governments on where infrastructure needs to be built or improved. Picture by supplied.](/images/transform/v1/crop/frm/230597393/8594b8f9-dc20-4f1b-a51b-8c3a81e8c86f.jpeg/r0_13_1159_665_w1200_h678_fmax.jpg)
A discussion paper to be released at the summit, organised to discuss the availability and affordability of housing in regional Australia, will encourage governments to better target HAFF spending in regional areas.
It also suggests the creation of a national population plan to put infrastructure where it will be most needed and adaptable policy solutions that can be tailored to address specific issues in specific communities.
Ms Ritchie said more detail was needed about how the various government plans and policies would be implemented against the hugely varied nature of housing markets across regional Australia.
"In some communities, finding a block of land to build on is difficult; in others, there's a surplus. That's why we need nuanced, place-based policies and programs. A one-size-fits-all approach could have unintended consequences," she said.
"A blanket policy to bring more land to market should help alleviate under-supply in fast-growing regions but will have no impact on low-growth regions where supply is already plentiful.
"Our regions are gearing up to be the 'engine room' of the nation's transition to net zero - however, housing will be the key barrier to this growth."
In a community engagement review report released last Friday, Energy Infrastructure Commissioner Andrew Dyer said the renewable energy industry would create thousands of new jobs during construction and rivers of cash would likely flow into regions through energy company spending, community benefit funds and direct payments to farmers.
While Farmers for Climate Action polling unveiled this week found regional residents believed renewable energy projects may hold the key to future regional growth and making farms financially sustainable.
Meanwhile, Australian Forest Products Association acting chief executive Richard Hyett said the continued use of timber would help solve Australia's housing crisis and help reduce emissions.
"As the Commonwealth and State governments look to identify how they reduce emissions and meet ambitious climate targets, they need to more closely consider the role of embodied carbon in timber products as a major solution," he said.
"Right now, our sector has Aussie grown timber on the shelf ready to go and build the homes of tomorrow."