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Theres no place like home

How to overcome the failure of the Lower Hunter Regional Strategy

 

Land use planning failures are risking the Lower Hunters future as NSWs economic power house.  This report provides a report card on the Lower Hunter Regional Strategy, introduced by the previous NSW Government in 2006.

 

Land use planning failures are risking the Lower Hunters future as NSWs economic power house, according to a report released by the Urban Taskforce.

 

Theres no place like home is a major new report on the future of urban development in the Lower Hunter region. The report contains detailed analysis by independent economists at MacroPlan Australia. The report provides a report card on the Lower Hunter Regional Strategy, introduced by the previous NSW Government in 2006.

 

According to the report, if things keep going as they are, the Lower Hunters future growth will look more like Launcestons instead of an economic success story like Geelong.

 

The report says that the Lower Hunter Strategy had failed to anticipate the regions need for population growth with strategy numbers falling short of actual numbers. But even these numbers have been well below the levels experienced in Geelongs Barwon region and Queenslands Sunshine Coast, Townsville and Toowoomba regions.


The Lower Hunter has been constrained by its poor housing supply.  This report highlights serious problems in the Lower Hunters supply of new housing, and the broad social and economic repercussions for the local community.


The Lower Hunter Regional Strategy promised 4,600 dwellings a year, but the report shows that over the five years to mid 2010 the region only benefited from 2,000 homes annually less than half of the strategys goal.

Weve seen that the weak supply of housing has stunted the regions ability to accommodate families. Theres a real risk that, in future, the Hunter will become known as a region which families have to avoid, due to a lack of housing supply.


The report also highlights the regions increased dependence on rental housing.  Nearly half the population increase in the region over the 2005 to 2010 period was only possible because of the more intensive use of existing rental housing. This has reduced living standards.  Rooms set aside as studies, or family living space, have been converted to bedrooms. Dilapidated houses that would otherwise have been regarded as unsuitable for rental have been tenanted.


The report shows how a rationed supply of housing increasingly pits the regions existing residents seeking housing against those moving into the region.  From 2000 to 2010, median rentals for a three bedroom house in the Lower Hunter have risen by between 82 per cent in Port Stephens - and 100 per cent in Newcastle.  Rental growth has far outstripped Sydney, which suffered a 67 per cent rise over the same period. The proportion of rental households in stress is estimated to have risen to 56 per cent. The housing undersupply means that many locals who want to stay in the region will be priced out of the local housing market.


This report finds that, without reform to the Lower Hunters residential development process, population growth will be stunted to an annual increase of just 0.9 per cent a year.  That would see the Lower Hunter, the region that should be NSWs economic powerhouse, growing at roughly the same rate as Launceston, Burnie-Devonport and Lismore.  Thats half the level of growth enjoyed by Geelongs Barwon region, or Queenslands Toowoomba region.

This will clearly have economic consequences, but the social consequences also should not be ignored. For example, it will mean rental growth averaging 8 per cent per annum across the Lower Hunter. In five years, 65 per cent of current rental households will be in a state of housing stress.

Launceston-style growth rates in the Lower Hunter would also dampen growth in key industries. For example, theres a pipeline of mining construction projects in the Hunter region which could produce an additional 76 million tonnes of coal per annum. Without a strong housing supply, there wont be enough workers. If labour shortages hit just 5 per cent of the projected increase in coal supply, coal royalties to the state will be reduced by about $30 million per annum.


Planning for the Lower Hunters annual population growth should be more ambitious, with an ability to accommodate an annual population increase of at least 1.4 per cent a year.  The existing 4,600 a year annual dwelling target - which hasnt been met - should be replaced.

Government and local councils should embrace a more sophisticated target of 5,400 to 14,500 new homes a year for the region. Of course, the actual number built within this range will be for home buyers, property owners and businesses to determine. The important thing is that, within these boundaries, land use planning should not be constraining the communitys access to housing.

 

Download There's no place like home FREE as a PDF (2 MB)

 

You can also purchase There's no place like home as a book for $27.50 (inc. GST), plus postage, by e-mailing your details to This email address is being protected from spambots. You need JavaScript enabled to view it.

Land use planning failures are risking the Lower Hunters future as NSWs economic power house, according to a report released by the Urban Taskforce.

Theres no place like home is a major new report on the future of urban development in the Lower Hunter region. The report contains detailed analysis by independent economists at MacroPlan Australia. The report provides a report card on the Lower Hunter Regional Strategy, introduced by the previous NSW Government in 2006.


According to the report, if things keep going as they are, the Lower Hunters future growth will look more like Launcestons instead of an economic success story like Geelong.


The report says that the Lower Hunter Strategy had failed to anticipate the regions need for population growth with strategy numbers falling short of actual numbers. But even these numbers have been well below the levels experienced in Geelongs Barwon region and Queenslands Sunshine Coast, Townsville and Toowoomba regions.


The Lower Hunter has been constrained by its poor housing supply.  This report highlights serious problems in the Lower Hunters supply of new housing, and the broad social and economic repercussions for the local community.


The Lower Hunter Regional Strategy promised 4,600 dwellings a year, but the report shows that over the five years to mid 2010 the region only benefited from 2,000 homes annually less than half of the strategys goal.

Weve seen that the weak supply of housing has stunted the regions ability to accommodate families. Theres a real risk that, in future, the Hunter will become known as a region which families have to avoid, due to a lack of housing supply.


The report also highlights the regions increased dependence on rental housing.  Nearly half the population increase in the region over the 2005 to 2010 period was only possible because of the more intensive use of existing rental housing. This has reduced living standards.  Rooms set aside as studies, or family living space, have been converted to bedrooms. Dilapidated houses that would otherwise have been regarded as unsuitable for rental have been tenanted.


The report shows how a rationed supply of housing increasingly pits the regions existing residents seeking housing against those moving into the region.  From 2000 to 2010, median rentals for a three bedroom house in the Lower Hunter have risen by between 82 per cent in Port Stephens - and 100 per cent in Newcastle.  Rental growth has far outstripped Sydney, which suffered a 67 per cent rise over the same period. The proportion of rental households in stress is estimated to have risen to 56 per cent. The housing undersupply means that many locals who want to stay in the region will be priced out of the local housing market.


This report finds that, without reform to the Lower Hunters residential development process, population growth will be stunted to an annual increase of just 0.9 per cent a year.  That would see the Lower Hunter, the region that should be NSWs economic powerhouse, growing at roughly the same rate as Launceston, Burnie-Devonport and Lismore.  Thats half the level of growth enjoyed by Geelongs Barwon region, or Queenslands Toowoomba region.

This will clearly have economic consequences, but the social consequences also should not be ignored. For example, it will mean rental growth averaging 8 per cent per annum across the Lower Hunter. In five years, 65 per cent of current rental households will be in a state of housing stress.

Launceston-style growth rates in the Lower Hunter would also dampen growth in key industries. For example, theres a pipeline of mining construction projects in the Hunter region which could produce an additional 76 million tonnes of coal per annum. Without a strong housing supply, there wont be enough workers. If labour shortages hit just 5 per cent of the projected increase in coal supply, coal royalties to the state will be reduced by about $30 million per annum.


Planning for the Lower Hunters annual population growth should be more ambitious, with an ability to accommodate an annual population increase of at least 1.4 per cent a year.  The existing 4,600 a year annual dwelling target - which hasnt been met - should be replaced.

Government and local councils should embrace a more sophisticated target of 5,400 to 14,500 new homes a year for the region. Of course, the actual number built within this range will be for home buyers, property owners and businesses to determine. The important thing is that, within these boundaries, land use planning should not be constraining the communitys access to housing.

 
 

Download There's no place like home FREE as a PDF (2 MB)

You can also purchase There's no place like home as a book for $27.50 (inc. GST), plus postage, by e-mailing your details to This email address is being protected from spambots. You need JavaScript enabled to view it. .