The scale of Townsville's housing emergency has been laid bare in a shocking new report, with the city's rental vacancy rate collapsing to a critically low level and sparking serious fears for its social and economic future.
A Market in Severe Distress
The latest Quarterly Rental Vacancy Report from the Real Estate Institute of Queensland (REIQ) paints a dire picture for North Queensland's largest city. For the December 2023 quarter, Townsville's vacancy rate was recorded at just 0.7%. This figure is far below the healthy benchmark of 2.6% to 3.5% and indicates a market in severe distress where demand massively outstrips supply.
This crisis is not confined to the rental market. The report also highlights a parallel squeeze in home ownership. Data from the Real Estate Institute of Australia shows the proportion of median family income required to meet average loan repayments in Queensland has skyrocketed. It now sits at a staggering 53.9%, a sharp increase from 36.6% just three years prior. This makes the dream of owning a home increasingly unattainable for many local families.
Economic Growth Stifled by Housing Shortage
Antonia Mercorella, CEO of the REIQ, issued a stark warning linking the housing shortage directly to the region's economic potential. "We cannot grow our economy and population if we do not have the roofs to put over people's heads," she stated emphatically. Mercorella pointed to major government investments and projects in the pipeline for North Queensland, questioning where the workforce needed to deliver these projects will live.
The consequences of this crisis are already being felt across the community. Essential workers, young families, and vulnerable residents are being priced out or simply cannot find a place to live. Social services are reporting increased pressure as homelessness risks grow. The situation threatens to stifle the very economic development that Townsville has been banking on for its future prosperity.
Calls for Immediate and Coordinated Action
In response to the alarming data, the REIQ is urging all levels of government to treat the situation with the urgency it demands. The institute is calling for a coordinated national cabinet response focused on practical solutions to boost housing supply. Key recommendations include:
- Streamlining planning and approval processes to accelerate new housing developments.
- Investing in critical infrastructure to support new housing estates.
- Providing incentives for build-to-rent projects and other alternative housing models.
- Reviewing taxation and regulatory settings that may be hindering investment in new housing stock.
The report makes it clear that without immediate and decisive intervention, Townsville's housing crisis will deepen. The social fabric of the city is at risk, with long-term implications for community wellbeing, business viability, and population growth. The time for action, according to industry leaders and community advocates, is now.
