REGIONALISATION CONSULTATION PAPER - MARCH 2022
HOUSING
DIGITAL CONNECTIVITY
Housing affordability is a key factor driving people away from our major cities. However, pressures in housing markets are almost universal across regional Australia – in both rental and purchase markets. While these pressures are partly driven by cyclical and macroeconomic factors (largely stemming from the COVID-19 pandemic), they are underscored by a longer-term underinvestment in regional housing. That is, over the long term, regional home building has not kept pace with population growth.
“There is a new paradigm in the way we use telecommunications and Australia will be relying even more on digital connectivity as it strives to become a leading digital economy.” Luke Hartsuyker, Chair, Regional Telecommunications Independent Review Committee43
The shortage in regional housing is constraining local economic growth and development, preventing regions from meeting their full potential and contributing to the post-COVID recovery. There are jobs going unfilled simply due to a lack of suitable housing. Local private enterprise is constrained in realising nascent opportunities and creating new jobs because of local shortfalls in the amount and mix of housing.
Digital connectivity is critical to the growth, productivity and liveability of regional Australia. Digital connectivity supports access to education and healthcare, as well as a range of other services, and allows businesses to remain competitive. The 2021 Regional Telecommunications Review43 recognises the essential role of digital connectivity in everyday life in rural, regional and remote Australia, suggesting that it is on a par with the provision of electricity. It makes a series of recommendations to ensure that the digital divide does not widen, leaving regional Australia behind.
Housing supply levers in relation to planning (including planning controls), the provision of infrastructure, and incentives for development need to be set not only to ensure an appropriate volume of housing supply, but also an appropriate mix of dwelling types at suitable (affordable) price points. Constrained access to housing finance is also a key barrier.
This “digital divide” is tracked by the Australian Digital Inclusion Index (ADII), which measures digital access, affordability, and digital ability44 to give a score out of 100. The 2021 Digital Inclusion Index shows that the divide between rural and urban areas is decreasing but is still marked. Regional areas recorded an overall ADII score of 67.4, which is 3.6 points less than the national average (71.1), and 5.5 points less than metropolitan Australia (72.9).
Further Reading: Building the Good Life: Meeting the Demand for Regional Housing
THE AUSTRALIAN DIGITAL INCLUSION INDEX Access (Index)
Regional
Measures the connection type, data allowance and speed, types of devices used, and the frequency and intensity of use.
Metro National Average
Affordability (Per centage households with low affordability)
66.3 71.9 70.0
Regional
Measures the percentage of household income required to gain a good quality service with reliable connectivity (the ‘internet bundle’). Households paying more than 5 per cent of their income to access the bundle are considered to have ‘low affordability’. Digital Ability (Index)
Metro National Average Regional
Measures Australians skill levels in interacting and conducting activities online, and our confidence in doing so.
Metro National Average
Key Questions: 7. What are the main liveability concerns in your region? 8. What strategies are currently being, or should be, implemented to address these? 26
47.4% 35.1% 39.2%
59.7 66.7 64.4
