Australia's Regional Housing Shortages Worsen Amid Rising Costs and Workforce Issues

Regional Housing Shortages Intensify: Karratha Explores Modular Solutions

The Housing Industry of Australia (HIA) has issued a warning that regional housing shortages across Australia are expected to intensify. This is attributed to a combination of increasing costs and ongoing workforce shortages. The impact is already evident in regions like north-west Western Australia, where accessing local trades is challenging, and the lack of available housing deters potential workers.

Karratha, a city in the Pilbara region of WA, is exploring modular housing as a potential solution to these issues.

Staffing and Accommodation Challenges

Tim Fleisher, Executive Director of local building company TIMIK, highlighted the persistent struggle with local staffing shortages. He stated that his company often needs to source trades from distant locations, such as roof framing and wall framing teams from Broome (1,000 km away) and roof sheeting teams from Perth.

Fleisher also identified accommodation as a significant obstacle. He noted that many skilled tradespeople inquire about accommodation and will seek employment elsewhere if it's not provided. Unlike mining companies, smaller building firms typically cannot afford expensive camp accommodations for staff, which can cost $400 per night. These delays in staffing can lead to project builds being extended by months.

"Many skilled tradespeople inquire about accommodation and will seek employment elsewhere if it's not provided."

A report by the HIA indicated that rising land prices are also impeding the construction of new homes.

Michael McGowan, Executive Director of HIA Western Australia, explained that these challenges make it risky for builders to commit to new projects in regional WA, as the availability of skilled labor is uncertain. He observed that while the Pilbara housing construction market was "subdued" before COVID-19, the post-pandemic demand for housing has outpaced the available workforce. McGowan suggested developing local apprentices as a feasible solution for the area.

"These challenges make it risky for builders to commit to new projects in regional WA, as the availability of skilled labor is uncertain."

Modular Housing as a Solution

Local entrepreneurs Ian Abbott and Carissa Ives established a company two years ago, focusing on small developments. Their company is currently developing 12 build-to-rent properties in Karratha using modular housing fabricated in Perth.

Modular housing involves prefabricating homes, complete with bathrooms, kitchens, and internal fittings, in a factory. These units are then transported to the site and assembled on prepared foundations. This method is considered more cost-effective than traditional construction due to reduced on-site labor costs.

Project manager Carissa Ives explained that modular housing offered a time and cost-effective approach for their Karratha developments, especially given the limited availability of local builders. Each modular house has a four-week turnaround for manufacturing, assembly, and fit-out, with the 12 homes projected for completion within eight months.

"Modular housing offered a time and cost-effective approach for their Karratha developments, especially given the limited availability of local builders."

The City of Karratha is also adopting modular solutions. Its "Project Dorothy" initiative will involve installing three modular apartment complexes in the suburb of Bulgarra, providing over 100 new rental properties later this year.