The Minns government’s latest proposal to tackle New South Wales’ housing crisis aims to fast-track the construction of affordable homes and address restrictive planning regulations. While this is a welcome step forward, its success will depend on how effectively local councils, including Kiama, adapt to address their unique challenges.

Kiama’s natural beauty and coastal charm have made it one of the most sought-after places to live, but its popularity has also contributed to a growing housing affordability issue. With skyrocketing property prices, plummeting rental availability, and short-term holiday rentals removing stock from the market, the community is at a crossroads. Essential workers, young families, and long-time residents are all grappling with the pressures of an increasingly exclusive housing market.

Kiama’s housing challenges didn’t appear overnight. Decades of cautious planning decisions, restrictive zoning, and community resistance to medium density developments have created an undersupply of diverse housing. Essential workers, the backbone of Kiama’s community, are often priced out, forced to commute from neighbouring towns, while young families struggle to find smaller, low-maintenance homes near schools and amenities.

Short-term holiday rentals exacerbate the issue, removing long-term housing stock and driving up prices. The rental market, already tight, leaves little room for those who need it most, including teachers, nurses, and hospitality staff who sustain the local economy.

While the council has worked on strategic property acquisitions, such as the recent $6.3 million Depot relocation project, questions remain about whether these moves adequately address the housing needs of the broader community. The reliance on single family homes and large lot sizes has left little room for innovative, sustainable housing solutions that cater to a variety of needs.

Kiama’s planning decisions must reflect the changing demographic and economic realities of the region. Without bold action, the area risks becoming increasingly inaccessible, undermining the diversity and vibrancy that make Kiama special.

Kiama is at a crossroads. It can either maintain the status quo, risking an increasingly exclusive community, or embrace change to build a future where everyone has a place to call home. The Minns government’s recent housing initiatives provide a framework, but real change will require local leadership and community support.

Residents, councillors, and stakeholders must work together to create a housing system that reflects Kiama’s values of inclusivity, sustainability, and community spirit.

For a deeper dive into the systemic causes of the housing crisis and how state-wide reforms might help, see our analysis: "To Understand the Housing Crisis, You Need to Look Back to Move Forward."