How the housing crisis is hitting your humble glass of milk

Victoria’s dairy industry, accounting for 63% of Australia’s milk supply, is currently grappling with a severe housing crisis impacting its ability to attract and retain a skilled workforce. The situation is particularly acute across three major milk-producing regions: south-west Victoria, northern Victoria, and Gippsland.

The Gardiner Foundation is spearheading efforts to tackle this issue by opening an expressions of interest (EOI) process to discover innovative housing solutions. The initiative seeks to partner with developers, investors, and government entities to create sustainable, affordable housing for dairy communities.

Victoria’s dairy regions face significant challenges, including a critical shortage of rental and owner-occupied properties, escalating rental costs driving workers out of affordable housing, and house prices that discourage property purchases. Recent data from Homes Victoria highlights a median regional rent of $450 per week, with an annual rent increase of 6.8% far exceeding the decade average.

Persistent low vacancy rates have made housing increasingly inaccessible for regional workers and businesses, further compounded by competition from other industries also seeking to house their workforce. Gardiner Foundation's General Manager, Jenny Wilson, emphasizes that limited rental availability and a lack of diverse housing options hinder workforce accommodation. Traditional developers find limited investment opportunities in small towns, adding to the challenge.

The dairy industry is keen to explore solutions through the EOI process, which aims to stimulate local economies and foster community development. With George Housakos of Cushman & Wakefield leading the EOI execution, the process invites stakeholders to present ideas for sustainable housing solutions. Market briefings are scheduled for April 28, with the formal launch of the EOI on April 30, 2025.