Regional housing indicators have got alarm bells ringing in some areas as prices jump to record levels.
In Busselton, new data shows median house prices climbed 4.2 per cent to $715,000 in the December 2023 quarter, which was up from $686,000 in the September quarter.
It was the top performing WA regional centre for the December 2023 quarter, according to the Real Estate Institute of WA (REIWA).
REIWA figures show median house prices in Broome are now $640,000, in Karratha median values have hit $556,250 and in Port Hedland the median house will set you back $523,086.
These are comparable to median house prices in Perth.
In Albany, housing reached a median of $495,000 and in Bunbury, the median house price in the December quarter was $460,000.
Across the nation, median house prices are tipping $605,000, which is almost on a par with metropolitan market figures of three years ago.
Much of this is being driven by a shortage of housing supply and strong demand for living in regional areas, in Busselton for example.
REIWA president Joe White said several factors were underpinning price growth in WA regions.
"The rental shortage is driving the lower end of the market as people look to buy a home and get off the rental roundabout," Mr White said.
"Similarly to the rest of the nation, population growth and the rush to WA's regions are the other factors.
"The State is seeing strong population growth overall and the fantastic South West lifestyle continues to draw people to Busselton.
"You can't underestimate the ongoing impact of the airport on the region.
"With three mining companies flying out of Busselton, there has been a strong influx of fly-in, fly-out workers and their families.
"They are keen to enjoy the lifestyle and the airport lets them commute with ease.
"The high demand for homes is reflected in the number of sales in the December quarter."
Sales in Busselton in the December quarter were 19pc higher than in the September quarter and 5.3pc higher than the same time in 2022.
"While sales historically slow down over Christmas, there was little evidence of that this year," Mr White said.
Seven of WA's nine regional centres recorded increases in the median house sale price in the December quarter, one remained stable and one recorded a small decline.
Meanwhile, the State opposition leader has criticised the WA Government over social housing, describing the situation in Albany - and throughout WA - as a crisis.
Shane Love's comments come after new data was released showing there were at least 160 people facing homelessness in the city.
Regional Australia Institute (RAI) chief executive officer Liz Ritchie said as demand for a "life in the regions" continued unabated, attendees at last week's National Regional Housing Summit discussed developing solutions to support regional communities.
"Regional housing must be a priority, as it is putting a handbrake on our nation's growth and prosperity," Ms Ritchie said.
"Our regions are gearing up to be the engine room of the nation's energy transition to net zero.
"But (lack of) housing will be the key barrier to this growth."
Between March 2020 and December 2023, the median value of dwellings in capital cities increased by 29.3pc from $643,540 to $832,193, while in regional Australia it grew by 54.2pc from $392,802 to $605,780.
"While it is still more affordable to buy in some regions, for now, there is no third option if locals or metro-movers are priced out of the market, and supply fails to meet demand," Ms Ritchie said.
RAI analysis found flats or apartments make up just 2-3pc of the total housing stock in some regional markets, compared to more than 42pc in metropolitan Australia.
With population movement to the regions still elevated almost 12pc on pre-COVID levels, housing supply requires a laser focus, with demand for one and two-bedroom residential accommodation to support essential workers.
"We need to plan for, invest in and facilitate regional growth because more people want to move to regional Australia," Ms Ritchie said.
"But as a nation we're not prepared for this changing shift in population.
"Thousands of jobs are on offer in our regional communities and, to help fill those positions, we need more diverse housing options available.
"As regional Australia develops, so too must its housing stock."
Last week's solutions-focused Summit in Canberra was hosted by RAI, the Real Estate Institute of Australia (REIA) and Master Builders Australia (MBA) - and bought together local, State and Federal governments and representatives from industry, peak bodies and the not-for-profit sector as part of an effort to shape the future of regional housing policy.
RAI, REIA and MBA released a discussion paper this week presenting the latest regional housing stock data and highlighting local solutions.
The paper also makes policy recommendations, including taking a targeted approach to how the Housing Australia Future Fund is invested in regional areas, a National Population Plan to ensure long-term planning for future infrastructure and adaptable policy solutions that can be tailored to address specific issues in specific communities.
REIA chief executive officer Anna Neelagama said in high-growth areas, it was imperative swift action was taken to alleviate pressures on housing.
"We know the problem is a lack of supply,'' Ms Neelagama said.
"It's time to move forward to specific solutions and put delivering them in the hands of our regional communities.
"These communities need at scale injections of funds in areas of high growth to build more houses and better use any existing empty houses across our regions."
MBA chief executive officer Denita Wawn said to achieve sustainable growth in regional communities, all levels of government needed to work together to remove the biggest roadblocks - zoning, planning and integrated land use.
"As regional communities grow into bigger hubs of activity, the type of housing on offer needs to satisfy the needs of everyone in that community,'' Ms Wawn said.
"It's not always about building out, but building up with appropriate infrastructure and services in place.
"However, the industry's capacity needs to be bolstered in the regions to ensure supply can keep up with demand.
"Governments need to look at how we can ensure the regions are an attractive place for businesses to expand in to and workers to move to."
Ms Ritchie said while housing was top-of-agenda for governments, more detail was needed about how current and proposed policies would be implemented in a regional context, where housing markets were hugely varied.
"In some communities, finding a block of land to build on is difficult, in others, there's a surplus," she said.
"That's why we need nuanced, place-based policies and programs.
"A one-size-fits-all approach could have unintended consequences."
"A blanket policy to bring more land to market should help alleviate under-supply in fast-growing regions, but will have no impact on low-growth regions where supply is already plentiful."
The RAI's Regionalisation Ambition - a 10-year, 20-goal framework for an Australia where more people live in the regions - aims to see by 2032, the regional rental vacancy rate increase to above 3pc and for annual building approvals to keep pace with population growth.
