Huge housing outlay needed in Esperance

Esperance needs up to 3,400 extra homes by 2050 to accommodate a number of major projects, sea change-seeking farmers and a growing tourism industry.

That prediction was outlined in an Urbis report compiled for the Shire of Esperance and Goldfields Esperance Development Commission passed by Esperance councillors last week.

The report highlights demand for almost every type of development in Esperance, from standard homes and workforce housing to short-stay accommodation and retirement villages.

Conservative estimates place the additional housing requirement at 822 new builds should growth continue on a business-as-usual basis.

But the report spelled out a $1.8 billion investment pipeline over the next five years, largely pinned on a $1.07 billion spend on the mooted Western Green Energy Hub.

Non-resources projects include caravan park expansions, land subdivisions, a new waste management facility, grain storage and holiday accommodation.

Under best-case modelling, such investment could lift Esperance’s population from about 14,700 to 20,800 by 2041 and require more than 170 new dwellings to be built each year.

Complicating matters is the high build cost and low land value appreciation in Esperance, which discourages investment in new homes for the rental market.

The shire has been recommended to consider incentives to invest in the town centre, probe density bonuses, plan for a premium hotel and promote its tiny homes strategy.

A planned new district at Bandy Creek hosting up to 5,285 lots could swallow up much of the demand, however, such a move remains at least 10 years away.

Near-term prospects include unlocking five planned estates holding 456 lots around town and completing the final 74 lots at Flinders estate.

The need for more seniors, disability and government officer housing was noted.

Esperance has also been among the hardest hit in Australia by the tight labour market, at one point reaching 0 per cent vacancy and has this year sat at 0.1 per cent.

On the tourism front Urbis’ report argued a case for a 45-bed hostel as Esperance currently has no such facility.

Much of the town’s short-stay dwellings were found to be at least 50 years old and in need of renewal.

Of Esperance’s 152 AirBnB listings all bar 10 were for entire homes, backing anecdotal concerns rentals were being placed on the short-term market where daily rates have increased up to 50 per cent since 2019 to $240 per night, compared to $365 per week for rentals.