A critical shortage of housing in Townsville is threatening to derail a $40 billion pipeline of major projects, with industry leaders warning the region cannot accommodate the influx of workers needed to deliver the works.
Housing Crisis Deepens as Major Projects Loom
The Townsville Housing and Infrastructure Summit heard on Tuesday that the city needs an additional 10,000 homes over the next five years to meet demand, but current construction rates are falling well short. With several multi-billion-dollar projects in the pipeline, including the Haughton Pipeline, the Lansdown Eco-Industrial Precinct, and the expansion of the Port of Townsville, the shortage threatens to become a bottleneck.
“We are at a critical juncture,” said Townsville Enterprise CEO Claudia Brumme-Smith. “Without adequate housing, we risk losing the economic opportunity of a generation.” The summit brought together developers, government officials, and industry bodies to discuss solutions to the housing crisis.
Project Pipeline at Risk
The $40 billion project pipeline includes major resources, energy, and infrastructure developments. However, the lack of available rental properties and affordable homes is making it difficult to attract and retain skilled workers. Rental vacancy rates in Townsville have fallen below 1%, among the lowest in the country, pushing up rents and forcing some workers to live in temporary accommodation or commute long distances.
“We have projects that are ready to go, but we can't get the workers because there's nowhere for them to live,” said Andrew Tait, CEO of the Queensland Resources Council. “This is a national issue, but it's particularly acute in regions like Townsville that are on the cusp of a major boom.”
Call for Urgent Action
Industry groups are calling on all levels of government to fast-track approvals for new housing developments, invest in infrastructure to unlock land, and provide incentives for build-to-rent projects. The summit also highlighted the need for innovative housing solutions, such as modular construction and worker accommodation villages.
“We need to think differently about how we deliver housing,” said Cr Brumme-Smith. “We can't afford to let this opportunity slip through our fingers.”
The Queensland Government has committed to a range of housing initiatives, including a $2 billion Housing Investment Fund and a $1 billion program to accelerate housing delivery. However, local leaders say more needs to be done to address the specific challenges facing Townsville.
“The state and federal governments need to work with us to ensure that we have the housing we need to support this growth,” said Townsville Mayor Jenny Hill. “This is not just about building houses; it's about building communities and securing the future of our city.”
Without urgent action, the housing shortage could force some projects to be delayed or cancelled, costing the local economy billions of dollars in lost investment and jobs. The summit concluded with a commitment to develop a regional housing strategy within the next six months.
