NEW research released this week may hold the key to the regional housing crisis, with the Regional Australia Institute identifying six specific housing markets facing different challenges across the country.
The six markets have been identified as stalled, volatile, stable, coastal, growth and most expensive, with with regions in SA home to all bar the final market.
Stalled markets which are characterised as small, stalled, inland and in-land were identified in towns across the Mid North and Eyre Peninsula and volatile markets described as small, stalled, low-cost and volatile were identified in the Outback and Mid North.
Stable markets were identified across the state's eastern regions while coastal markets were identified on the EP and Mount Barker was identified as a key growth zone.
RAI chief economist Dr Kim Houghton said what the institute was trying to aim for were placed-based solutions that reflect the particular drivers of housing shortages and challenges in each place, rather than a blanket approach.
"When small, low cost markets are stalled one of the big issues is that it's very hard to get bank finance for purchasing in these small markets," he said.
"With these stalled markets, it's much more around helping potential builders and new homeowners get financed not land supply.
"It's partly because there isn't much market action, so the banks have generally been reluctant to lend to the market that's not moving very much.
"You can see that's a circular problem where there's no action, there's no lending if there's no lending there's no action."
RAI chief executive officer Liz Ritchie said understanding the markets would help deliver more affordable and appropriate homes.
"Regional Australia is experiencing a moment in history like no other," she said.
"In the decade to 2020, its population grew by an average of 76,500 people per annum - a life in the regions is now more attractive than ever before.
"As millions of Australians either choose to stay in the regions, or make the move, this surge in popularity brings with it growing pains that need addressing as we contend with the unique settings facing our regions."
"Failure to recognise the distinct regional housing markets in Australia and respond accordingly will see the current pressures continue to escalate.
"With more than 84,000 jobs advertised in March 2022 - yet another record broken - regional employers are looking for staff and they need appropriate housing to accommodate them."
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