Regional Homes Approvals Plummet

The number of homes being approved in Regional Australia is plummeting, according to a new report by the Regional Australia Institute (RAI).

The Answer the Call for Regional Housing report shows approval numbers between 2000 and 2025 dropped by 21%. In the past 12 months, fewer than 48,000 homes were approved in regional areas compared with 60,000 in 2000.

This is despite 115,000 people moving to regions every year.

The RAI recommends the adoption of different construction methods, including prefabricated homes, to help the regions lift housing supply.

RAI CEO, Liz Ritchie, says regions face unique challenges, like high building costs, worker shortages, lack of industrial scale and the dominance of detached housing.

“This report highlights that the lack of housing is impacting the regions socially and economically, affecting regional Australia’s ability to grow prosperously and sustainably,” she says.

Vacancy rates in regional Australia were 1.7% in December 2024, compared to 2.0% in capital cities. In 2024, Regional rents rose 6.2% compared to capital city increases of 4.3%.