Why Colac Needs More Affordable Housing

Regional communities like Colac play a vital role in Victoria’s economy and social fabric. With strong employment opportunities, essential services, and a close-knit community, Colac continues to attract workers and families seeking stability and lifestyle outside major cities. However, like many regional centres across Victoria, Colac is experiencing increasing pressure on its housing supply particularly in the affordable rental and ownership segments. Addressing this challenge is critical not only for individual households, but for the long-term strength and resilience of the community itself.

Housing shortages in regional towns like Colac are placing pressure on essential workers. People working in healthcare, education, childcare, and other key services are finding it harder to secure affordable housing close to their workplaces. As a result, local hospitals, schools, and care services face growing challenges in attracting and retaining staff, which can weaken the services communities rely on.

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Colac’s rental vacancy rate is critically low.

Colac’s rental market is operating well below what is considered a balanced level. Vacancy rates have been recorded at around 0.38%–0.5%, indicating an extremely constrained supply of rental housing. In practical terms, this means there are very few homes available at any given time, leaving households with limited choice and increasing pressure on affordability, stability, and security.Why this matters:When vacancy rates fall below 1%, housing stress becomes systemic rather than individual. New, well-located affordable homes are essential to restoring balance and supporting community stability.Source: SQM Research – Residential Vacancy Rates (Regional Victoria)

Employment is strong, but housing supply hasn’t kept pace.

The Colac Otway Shire has a low unemployment rate of approximately 2.8%, reflecting strong labour demand and a healthy local economy.However, without sufficient affordable housing, workforce participation becomes increasingly difficult to sustain. Essential workers in healthcare, education, childcare, and local services are struggling to secure housing close to where they work.Why this matters:Employment growth alone does not support community resilience. Housing supply must keep pace with workforce demand so people can live, work, and remain connected to the region long-term.Source: Australian Bureau of Statistics (ABS) – Labour Force & Census Data

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Well-located housing supports long-term community resilience.

Access to affordable housing is not only about cost — location plays an important role. Homes located close to schools, shops, healthcare, and everyday services reduce transport pressures and make it easier for people to stay connected to work, family, and support networks. In regional towns like Colac, well-located affordable housing helps prevent people from being pushed to the outskirts or neighbouring towns, supporting stronger social and economic connections. Why this matters: Stable, well-located housing supports workforce retention, local services, and long-term community stability.

Strong employment, limited housing choice

Housing pressure in regional centres like Colac is increasingly affecting the people communities rely on most. Healthcare workers, teachers, childcare staff, and other essential workers are finding it harder to secure affordable housing close to where they work. With limited rental availability, many are forced to commute longer distances or consider leaving the area altogether.

This has broader impacts on the community. Local hospitals, schools, and care services are finding it harder to attract and retain staff, not due to a lack of jobs, but because suitable housing is limited. Over time, this can weaken the services that support community stability and wellbeing.

Responding to local need: Colac Haven

Recognising these pressures, Kind Homes is responding through Colac Haven a boutique affordable housing project delivering five new homes in central Colac. The project is currently progressing through planning and preparing for construction. Designed to support local families and essential workers, Colac Haven reflects a considered response to clearly identified housing need. By focusing on affordability, location, and long-term suitability, the project aims to contribute positively to Colac’s housing supply while supporting the people who live and work in the community.

The role of affordable housing in regional resilience

Affordable housing underpins resilient regional communities. When people can access stable, well-located homes, entire towns benefit through stronger workforce retention, healthier local economies, and increased participation in education, healthcare, and community life. Over time, this stability strengthens the social and economic fabric of communities like Colac, creating lasting positive impact for generations to come.

Looking ahead

Colac’s continued growth and wellbeing depend on access to secure, affordable housing that aligns with local needs. Addressing this challenge is not only about meeting current demand, but about ensuring Colac remains a place where people can build stable lives, contribute meaningfully, and feel connected to their community over the long term. Colac Haven represents one step in responding to this need contributing five new affordable homes where they are needed most.