For decades, governments have understood that roads, ports, power stations and telecommunications networks drive economic growth. 

But housing was not seen as part of that productivity picture. Today our economy’s growth is being impacted by insufficient housing. The Northern Territory has workforce shortages across health, education, hospitality, construction and public services. At the same time, it faces one of the nation’s most severe housing shortages. 

As NT Shelter chief executive Annie Taylor says: “You can’t build a productive economy when there is not enough affordable housing. Every teacher, nurse, hospitality worker, tradie and police officer needs housing to contribute to the Territory’s future. They need a place to call home and if they don’t have one they can afford, they don’t come or they don’t stay.” 

The Parliamentary Joint Committee on Northern Australia concluded that the primary issue affecting workforce development in Northern Australia is housing affordability and availability. Businesses reported that finding workers was only part of the challenge – finding somewhere for them to live was proving equally problematic. 

TREASURER BILL YAN WITH NT SHELTER CEO ANNIE TAYLOR (LEFT) AND VENTURE HOUSING’S AMY FLETCHER. PHOTO: JOSHUA SPRING 

AFFORDABLE 

HOUSING IS INFRASTRUCTURE 

In Darwin, rental vacancy rates have fallen as low as 0.4 per cent, meaning, in effect, that there is almost no slack in the market. At the same time, rents frequently exceed $700 per week, placing significant pressure on low and moderate-income households. 

The consequences are visible everywhere. 

A teacher recruited from interstate may accept a position in the Territory, only to discover there are few suitable rental properties available. 

A nurse considering relocation compares not only salary packages but whether they can secure a home big enough for their family near work and school. 

A hospitality business may advertise vacancies for months because potential employees cannot find affordable accommodation. 

This is not just a labour market problem – it is also a housing problem. 

The Territory Government knows housing isn’t a side issue. It’s the foundation. Its three reform priorities of rebuilding the economy, restoring the Territory lifestyle and reducing crime all depend on people having access to stable, affordable housing. Without it, employers struggle to attract workers, families struggle to put down roots, and communities become harder to sustain. 

But the scale of the challenge is growing. 

Recent analysis suggests the Northern Territory faces a projected shortfall of about 14,500 social and affordable dwellings by 2036. In 2025, only 449 homes were completed in total, despite estimates suggesting the Territory needed almost 1500 new dwellings annually to meet demand. 

The result is predictable. Housing costs rise. Recruitment becomes harder. Retention becomes harder. Economic growth slows. 

This dynamic is not unique to the Territory. Across Australia, research is increasingly linking housing affordability to workforce shortages. Studies have shown that when housing costs make it difficult for teachers to live near the communities they serve, shortages emerge and the quality of public services deteriorates. 

National rental affordability data paints a similar picture. Recent studies found that many essential workers can afford only a tiny fraction of available rental properties, with some occupations able to access just one to three percent of listings. 

This is why the housing debate needs to evolve. 

Housing is economic infrastructure. As Venture Housing chief executive Tim Sunwoo said while showing off its most recent Palmerston property, community housing providers are in the business of providing housing access to those who need it. 

Ms Taylor says: “Hospitals and schools are only as effective as the people who staff them. A major project is only as productive as the workforce that can live nearby. Infrastructure without housing is like building an airport without runways. The asset exists, but its purpose cannot be fulfilled.” 

For too long, Australia has measured housing success through property values and construction activity. The more important measure may be whether a teacher can afford to live in the community they teach, whether a police officer can raise a family where they serve, and whether a nurse can stay in the Territory for the long term. 

If we are serious about productivity, workforce participation and economic growth, affordable housing cannot remain an afterthought. 

It must be recognised for what it is: 

The infrastructure that enables all other infrastructure to work. TQ 

TACKLING THE HOUSING SHORTAGE …(FROM LEFT) ANNIE TAYLOR, VENTURE HOUSING’S ALANA HALLAM AND VENTURE HOUSING CEO TIM SUNWOO. PHOTO: JULIANNE OSBORNE