Regional Victorian business owners say they are being forced to outlay huge amounts of money to acquire properties for staff accommodation to attract and retain workers — despite thousands of houses sitting vacant across the state.
As the regional housing and staffing crisis worsens, businesses in Central Victoria that have bought or rented housing for staff include the Royal Daylesford Hotel, the Lake House Daylesford and Hotel Frangos.
They say the lack of rental housing on the market is affecting their ability to fill vacant positions.
The businesses say they have had no choice but to buy properties despite 2021 Census data released on Tuesday revealing almost 23 per cent, or 2,000 properties, in Hepburn Shire were unoccupied on Census night — more than double the statewide figure of 11 per cent.
Nationally, there were more than one million unoccupied dwellings on Census night.
Unoccupied dwellings include holiday homes, huts and cabins, newly completed dwellings or dwellings to let — and are generally not available to long-term renters or people seeking permanent accommodation when they move to a town.
'Endemic social problem'
Hepburn Shire mayor Tim Drylie described the trend for short-term accommodation limiting local housing supply as an "endemic social problem".
Royal Daylesford Hotel owner Cameron Stone said he purchased a large dwelling 12 months ago and converted it into staff accommodation.
"We all have the same problem, all the way from Echuca to the coast."
Mr Stone said purchasing accommodation for staff was a big capital outlay and took time out of his day-to-day work managing the hotel, but he felt he had no other choice.
Between 10 and 20 staff members have been living at the facility and each has their own bathroom and cooking facilities.
"We thought it was the way to build longevity into what we are doing. The staff really enjoy living there, it is a really nice place to live. "
Mr Stone said hospitality and tourism businesses providing accommodation for staff was becoming a broad trend.
Businesses create housing solutions
A planning permit application for a new $4.5 million tourist accommodation facility in Daylesford, that is currently before council, includes plans to create six single-bedroom suites for staff accommodation on site.
Lake House Daylesford owner Alla Wolf-Tasker said her business purchased an old motel for temporary staff accommodation eight years ago and had some long-term housing, but the problem had become worse in recent years.
"Quite often we have them sitting vacant until new staff arrive, but then they are ready for when they come."
Hotel Frangos owner Louise Melotte said it had been a good business move to set up staff accommodation within walking distance of the Daylesford hotel before the pandemic hit.
"It is really important we have that option for people to come straight into. They can arrive in Daylesford and have a fully furnished property they can live at," she said.
"We have been doing it for quite some time but now, more than ever, it is making it a much easier transition to get staff."
Regional areas in 'dire straits'
Commerce Ballarat chief executive and Victorian Regional Chamber Alliance member Jodie Gillett said Daylesford, Ballarat and many other regional areas were experiencing major staffing challenges due to a lack of rental accommodation, but some towns, including Apollo Bay on the Great Ocean Road, were in "dire straits".
"Apollo Bay is an example where they haven't been able to attract really key staff to the area, such as teachers and medical staff, because of the lack of housing," she said.
"Candidates are so thin on the ground for jobs. It is an employee market, and they can choose. If accommodation is not available, then it is an easy choice to go somewhere else."
$25bn yearly bill if we fail to act on housing
Anglicare Victoria analysed rental affordability across the state and found two thirds of regional areas in Victoria did not have a single rental listing on March 19, 2022.
A new report, Give Me Shelter, reveals failure to act on housing needs will cost the community $25 billion per year by 2051.
Every $1 the Australian community invests in social and affordable housing will deliver $2 in benefits, the report says.
Housing All Australians, the organisation behind the report, is bringing business voices and a commercial lens to the affordable housing space.
Committee for Ballarat chief executive Michael Poulton said he would share the report with the group's members because business and government could invest in affordable housing to quickly scale up stock.
An Australian Institute of Health and Welfare report released on Wednesday shows social housing investment has not kept pace with the rate of growth, declining from 4.8 to 4.2 per cent since 2011.
