More houses across regional Australia are given the green light according to new data with approval figures at their highest since COVID times.
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Almost 53,000 new homes were given a green light in the June quarter according to ABS data, in what was the strongest quarter for housing approvals nationally in eight years.
The number of new housing approvals outside the capital cities was more than 15,760, the highest number of new housing approvals in the regions since September 2021.
It was also up sharply from around 14,470 the previous quarter.
"We haven't seen approvals at this level across regional Australia since the COVID boom of 2020 and 2021," said KPMG senior economist Terry Rawnsley.
"The rise in regional approvals reflects a broad economic shift underway across Australia, with many regional and smaller cities continuing to attract population growth, workers and investment."
Mr Rawnsley said regional cities had turned a corner since COVID with sustained growth occurring.
Sustained demand
"Historically, especially before COVID, a lot of regional markets might have a bit of activity one year and then things will drop off the following year.
"But now I think developers can see there's sustained demand for housing in places like Albury-Wodonga and Newcastle so they are confident to get out there and getting ahead of the market to get some more homes out of the ground."
Strong employment across diverse industries, affordability and a good quality of life were other drawcards across regional cities and major centres.
Wollongong and the greater Illawarra, which currently has a building approval above the national average, offered all of these qualities.
"You have a big university, a manufacturing sector along with construction and professional services creating a diversified economy which attracts people."
"It is a place where if one sector is down a bit, the other one might be up a bit."
He said strong local amenity also added to the attractiveness of the city, bringing people and housing development.
"When people are not working they want to have the cafes, the bars, the restaurants and the good schools."
Infrastructure impact
Better transport and infrastructure have also had an impact.
More frequent trains on regional rail services in Victoria have made Ballarat and Bendigo more attractive locations for house and land developments.
Meanwhile the possibility of high-speed rail between Newcastle and Sydney could bring further growth.
Likewise in the Hunter, improved road links between Newcastle and Maitland, contributed to greater housing approvals.
"That infrastructure creates a bigger surface area for people to choose where to live," Mr Rawnsley said.
He said throughout Australia having the labour to build had proven a challenge in attacking the housing supply issue.
"We are in this position where we need more construction workers to help deliver more housing," Mr Rawnsley said.
"As approvals increase, the construction sector will need a larger workforce to convert projects into housing supply."
Jen Melocco
Previously she lead the editorial team for two of Australia's most read property magazines for Domain, and published within premier Nine media brands The Australian Financial Review and The Sydney Morning Herald.
