REGIONAL policies should focus on improving labour markets, which would attract more residents, according to a new report, but regional residents are increasingly concerned about growth diminishing the “village feel” of their cities.
The report, Understanding the lived experience and benefits of regional cities, undertaken for AHURI by researchers from UNSW Sydney, RMIT University, University of Sydney and University of South Australia, explores the lived experience of residents to better understand the benefits and disadvantages of living in a regional city.
The research considered five case study cities: Albury-Wodonga, Cairns, Mildura, Whyalla and Wollongong.
Dr Laura Crommelin of UNSW Sydney said having affordable, spacious housing was seen as an important element of regional city living and of considerable appeal to young families.
“Indeed, it was seen as a crucial part of maintaining the appeal of regional living for some participants. However, many participants felt that the affordability and availability of regional housing – particularly rental – was declining because of regional population growth during COVID-19.
The pandemic forced many to consider a seachange or treechange – as well as a career change – and Australian Bureau of Statistics data has shown the regions had greater population growth than the capital in FY21 for the first time in 40 years. The Gold Coast, Sunshine Coast, the Illawarra and Geelong were among the favoured destinations.
Over the past 12 months, regional locations have seen house price growth of 25.5%, according to CoreLogic, to a median value of about $564,500. Regional Australian housing markets have been so far insulated from the current house price slowdown after the added demand fuelled a growth spurt in prices. Housing values were up 5.7% over the past three months compared with a 1.8% gain across the combined capitals.
Regional residents were also concerned about growth diminishing the “village feel” and “small town” appeal of their cities, according to the report. Whyalla residents saw population growth as important to the city’s ongoing viability, yet also suggested there was a limit to how much growth the city could handle before it would diminish amenity.
“This sense of disquiet indicates that regional growth policies need to show how population growth will benefit regional communities, rather than be something that just happens to them,” the report said.
Regional city residents found it was not always possible to maintain income levels when moving from a major metropolitan area. Some participants who had relocated from metropolitan areas reported having to adjust their work and career expectations when faced with regional labour markets. One Albury-Wodonga resident told of taking a 30% pay cut in moving to the area, which together with a lack of available career progression, was a major factor of not wanting to stay in the region.
“The reality of lower salaries makes assessments of the greater housing affordability benefits of regional living versus metropolitan living more complex. A primary focus for growth policy should be on improving regional labour markets, which would then attract and keep population,” Crommelin said.
“It needs to include considering how long-term career aspirations can be fulfilled in non-metropolitan Australia, as well as providing ongoing employment trajectories for skilled workers and appropriate employment for their spouses—issues that have proven to reduce the long-term success of government decentralisation programs.”
Many residents are beginning to feel high levels of frustration over the provision of essential services.
“There were particular concerns about the current lack of specialist health care and the waiting time for GPs. People also raised concerns about the likelihood of increasing demands on health and education as a result of population growth,” Crommelin said.