Published on Friday, 3 January 2025 at 7:33:00 AM
MEDIA RELEASE - Housing a Barrier to Business Growth and Key Service Delivery in Esperance
3 January 2025
Sincere thanks to all the businesses and organisations who participated in the Key Worker Accommodation Survey.
As expected, the survey results were concerning: 30 out of 32 respondents reported that the lack of housing is a critical barrier to hiring staff. The Esperance housing shortage is not a minor inconvenience—it's a major roadblock preventing local economic development, community growth and delivery of key services in town. The survey also revealed an additional 60 jobs could be filled immediately if adequate accommodation was available.
“The absence of the wages, productivity, expertise and additional family members represented by just these 60 jobs is a loss to our community’s economic health that easily runs into millions of dollars each year” said Shire President Ron Chambers.
Results from the survey showed demand for housing spans sectors across aged care, childcare, hospitality, retail, health, education, agriculture, and transport. This extensive deficiency highlights the urgent need for wide-ranging solutions to the housing crisis in Esperance.
The Broader Context
The Shire of Esperance Housing and Land Study[i], conducted in 2023, provides a detailed analysis of the housing situation and future needs. “The Study identifies key challenges, including high land development and construction costs, long build times, supply chain delays and State Government and industry use of existing housing resources, rather than creating new housing stock,” Ron said. These factors contribute to the limited housing capacity, which is unable to meet or keep up with growing demand.
The study also notes that the influx of new residents seeking a lifestyle change, along with the growth in tourism, have further strained the housing market. Many investors are converting long-term rentals into short-term accommodation, exacerbating the shortage of available housing for workers.
The Need for State Government Support
The Shire is seeking funding assistance to build a 20-unit Worker Accommodation Project, estimated to cost $7.95 million. This survey data, along with information from the Esperance Chamber of Commerce and Industry and Workforce Australia, will be used to highlight the critical need for housing to the State Government.
“The Shire of Esperance has committed to a contribution of $1.5million, and to provide land valued at $1.5million to realise the Project; however the remaining funds are being sought from the State Government. Without State support the Project will not be financially viable for the Shire and the Esperance community” Shire CEO Shane Burge said.
Shire President Ron Chambers added “The Shire recognises the severe impact of the housing shortage on our community and is taking proactive steps to address this issue. While acknowledging housing should be addressed through State Government and the private sector, current conditions show a clear market failure, with investment not meeting current demand. The Housing and Land Study emphasises that continuing with a ‘business as usual’ approach will not solve the housing crisis. Instead, robust measures and significant investment are needed to ensure sustainable community development and economic growth.”
Potential Solutions and Opportunities
The Housing and Land Study outlines several areas of focus to address the housing shortage, requiring action across Federal and State Governments, as well as land developers and industry. These include:
- Increasing Land Supply: Funding support from State and Federal agencies for construction and servicing costs to develop residential and industrial land.
- Development of State Land – The State Government owns significant land parcels in Esperance which if developed would increase the supply of land available to the market.
- Increased State Government Region Housing – Increased provision of Government Regional Officer Housing (GROH) would free up private rentals currently occupied by government workers.
- Incentives for Developers: Advocate to the State Government for financial incentives to encourage the construction of affordable housing.
- Public-Private Partnerships: Collaborate with private developers to leverage resources and expertise.
“By prioritising advocacy for these strategies, the Shire aims to create a more robust and resilient housing market, accommodating the needs of current and future residents,” said Shire CEO Shane Burge
The results of the Key Worker Accommodation Survey clearly demonstrate the urgent need for more worker accommodation to support local businesses and services. Addressing this issue is not only vital for the economic health of the Esperance region but also for the well-being of its residents.
The Shire of Esperance is committed to working with the State Government and other stakeholders to help resolve the housing crisis and ensure a prosperous future for our community.
[i] https://www.esperance.wa.gov.au/business/business-hub/invest-in-esperance.aspx
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