The knock-on implications for Kiama’s older residents and services will be highly problematic if workers in associated services, hospitality and healthcare leave due to a lack of accommodation.

“There comes a point where a teacher, barista, nurse or aged care worker can no longer afford to live in Kiama, no matter how beautiful it is,” said CEO of Traders in Purple and the prospective developer of Springside Hill, Brett Robinson.

“The average house costs 15 times the median income and private rental consumes more than a third of wages,” he said.

Kiama needs more young working women. Credit: Bruce Mars

Like many other local businesses, Kiama Council had problems finding staff last year. However, Chief Executive Officer of Kiama Council, Jane Stroud, said the labour shortage has recently improved.

“It was really difficult for key workers to afford to live in Kiama and there is no question in my mind that housing affordability plays a role in this equation,” she said back in 2023.

A significant component is that Council’s workforce is also commonly working part time and accessing flexible work arrangements to support transition to retirement.

According to Council documents, its median workforce age is 47, with an average age of 45.5. Approximately 30.5 per cent of its workforce is over 55 and a further 12.5 per cent over 50.

Last year, the AEC Group provided The Bugle with figures suggesting that housing demand in Kiama will almost double between 2023 and 2041, as the population is expected to skyrocket to more than 30,000 people.

With the proviso that if there is no new housing, Kiama’s population will fall and the labour market, especially in healthcare, aged care and hospitality, will contract.