Kiama, Shellharbour and the Shoalhaven have been identified as three of the 11 “game changer” locations by Business Illawarra in the mission to unlock housing supply.

With the Illawarra and South Coast facing a critical shortage in available accommodation, Business Illawarra commissioned detailed, region-specific research into affordable and key worker housing.

The lack of available options has been identified as a barrier that undermines workforce attraction, business expansion and essential services.

Business Illawarra has released its “Homes for Workers 2026 Policy Report”, calling for urgent action to ensure workers can live locally and businesses can continue to grow.

Kiama, Shellharbour, Calderwood, Bomaderry and the Nowra CBD have been nominated as key locations that require coordinated government action to deliver homes across the region, along with Bellambi, Gwynneville, West Dapto, Mittagong East, Wilton and Milton-Ulladulla.

Business Illawarra director Coralie McCarthy said the report urged for immediate NSW Government investment and planning reform.

Coralie McCarthy.

She said housing availability had become one of the most significant obstacles to workforce recruitment, retention and regional economic growth.

“Workers need somewhere to live. Without housing, businesses can’t grow - it’s that simple,” she said.

Among the report’s recommendations are:

• the establishment of a multi-year, cross-government infrastructure program to deliver roads, utilities and services that unlock zoned land.
• aligning Transport for NSW planning and funding with housing growth so transport infrastructure is identified early, prioritised transparently and delivered promptly.
• Transform Nowra CBD to accelerate rezonings, coordinate state investment and unlock housing that strengthens its role as a regional centre.
• Accelerate growth planning and rezoning in Milton-Ulladulla, balancing local character with the housing needed to support growth.
• Rezone places of worship to enable faith-based organisations to deliver affordable housing on land they own through more flexible zoning and planning controls.

• Fast-track student accommodation delivery through clear policy recognition to ease rental pressure, unlock supply and improve housing system efficiency.
• Enable modern modular and manufactured housing by updating definitions, planning controls and approvals.
• Allow second homes on rural land for family, ageing parents or essential workers, supporting farming operations while protecting productive land from subdivision.
• Prioritise social and affordable housing as critical workforce infrastructure on government land, including Bellambi, Gwynneville and Bomaderry-Nowra.
• Reform seniors housing planning controls to improve viability, unlock supply and support ageing in place, freeing up family homes and easing pressure across the system.
• Reforming land tax settings that disproportionately impact small, local investors in regional areas, helping retain long-term rental housing for local workers and stabilise the regional housing system.
• Recognise childcare as critical economic infrastructure.

McCarthy said the number of women aged 25–44 in employment in the region has almost doubled over the past five years, “yet more than 70% of local families remain in a childcare desert”.

“In some areas, there are three young children for every one childcare place.

“Childcare is now a frontline workforce issue, housing and access to essential services must go hand-in-hand if we want people to be able to work.”

The NSW Government announced earlier this week that $270 million would be invested in roads and transport links to strengthen the Illawarra as a critical economic gateway for the state.

Transport Minister John Graham said port operations at Bays West in Sydney and long-term freight and industrial capacity at Glebe Island would be transferred to Port Kembla, which will become the hub for the state’s future trade and freight network.

The Government is embarking on one of the world’s largest land transformation projects with the rezoning of BlueScope’s 200 hectares of surplus land in Port Kembla which Graham said would support up to 20,000 jobs on top of the more than 10,000 jobs supported by the steelworks.

Minister for the Illawarra and the South Coast Ryan Park said the investment package would “deliver the key roads and transport infrastructure we need to unlock limitless opportunity for growth in the region”.

The NSW Liberal Party is conducting a forum in Gerringong later this month to address the housing issue in the region.

Shadow Minister for the Illawarra and South Coast Chris Rath will address the South Coast Housing Forum: Housing, Community and the Future of Our Region at Mercure Gerringong on 27 March.

Former Shoalhaven City Deputy Mayor Paul Ell will be the emcee for the event with Fountaindale Group co-owner Jennifer Macquarie, Huskisson Hotel Group director Steve Bartlett and Shelter NSW CEO John Engeler among the other guest speakers.