Regional Australia is seeing a surge of popularity. City-dwellers are moving to the regions and regional people are choosing to stay. Regional Australia offers the 'good life' where community is strong, jobs are plentiful and housing – while currently under pressure – is still much more affordable and accessible than in the major capitals.

This discussion paper describes the current pressures across regional housing markets and the structural and cyclical drivers of these pressures. It outlines areas where policy should be considered and developed to support crucial additional (and appropriate) housing supply. The paper aims to lead and inform discussion among policy-makers, industry participants and regional stakeholders to bring about action to restore balance in regional housing and boost supply. It is the beginning of RAI’s deeper research into regional housing markets with research partner, the University of South Australia. The overall research will delve more closely into regional housing literature and policy and develop a typology of regional housing markets to inform more detailed place-based responses.