Regional NSW Key Worker Analysis

The Challenge

There is a shortfall in key worker housing in regional and rural NSW. This lack of housing means key roles are not being filled and government service delivery is absent, sub-optimal or lacking continuity. It appears that this is more prevalent in areas where the housing market failure is most acute. This situation means that communities are not receiving the same basic government service levels as metro and coastal areas of NSW. This has a direct impact on the residents of these communities as well as a longer-term impact on government’s strategic policy objectives, fiscal position and the performance of the NSW economy.

The Department of Regional NSW sought to investigate potential solutions to increase the supply of key worker housing in targeted regional areas.

The Action

Polis Partners in association with Astrolabe Group was engaged to develop a strategic business case for a pilot program of works which delivers place-based, whole-of-government solutions to the supply of key worker housing.

A cost benefit analysis and financial analysis were undertaken as part of the business case submission to estimate the costs associated with not meeting the housing demands for key workers, such as teachers, health professionals, and police officers. The analysis explored various cost aspects and considered both consumer and producer perspectives.

The Results

The studies directly facilitated the allocation of approximately $250 million by the NSW Government for the development of new key worker housing in regional NSW. Additionally, the findings aided in funding allocation for exploring alternative housing delivery mechanisms and processes.