Rodney Stevens
The Clarence Valley has been named the third most affordable sea change region in NSW based on median house prices and median local income as hundreds of families annually move from the cities in search of a more relaxed lifestyle.
The Regional Australia Institute compared median home prices and median local incomes in each local government area of the regions and capital cities, plus the distance to the coast, the distance to national parks and the economic diversity of each area and published the information in its Good Life Guide last Tuesday.
The study found the most affordable sea change region in NSW was the neighbouring Richmond Valley, where the median house price of $530,000 and the median income of $51,248 equated to a price-to-income ratio (ptir) of 10.3.
Kempsey was the second most affordable sea change region in NSW, with a median income of $50,550 and a median house price of $565,000 giving the area a ptir of 11.2.
With a median house price of $620,000 and a median income of $51,844, the Clarence Valley was the third most affordable sea change area in NSW with a ptir of 12.0.
Regional Australia Institute chief executive Liz Ritchie said the cost-of-living crisis was a driver for city dwellers to consider a move to regional Australia, along with a desire to have less debt, more space and more free time.
“If you can reduce your cost of living, you can reduce your debt burden, it stands to reason that your anxiety would also be reduced and that would support higher levels of wellbeing,” she said.
When the Covid pandemic hit, swathes of city dwellers moved to regional areas for more space, a more relaxed lifestyle and the ability to work remotely from home.
Ms Ritchie said some areas coped better than others with this influx of city folk, with some experiencing growing pains.
“We know we need people, but we know we also need more housing for the rental market,” she said.
“But we can’t build those houses unless we get more builders and tradies.”
This Covid induced influx of people moving to the regions has also had a ripple effect on the real estate market, driving up prices in places like Byron Bay, where the ptir ratio is 27.5, well above the neighbouring LGA’s of the Richmond Valley 10.3 and the Clarence Valley 12.0.
“It used to be Byron Bay was the place to be, and that moved out to Lennox Head and maybe some of these other places will be the next big thing, so as it becomes unaffordable people will move,” Ms Ritchie said.
“People say to me, ‘what happens to those people who’ve lived there that can no longer afford to live there?’
“These are challenges that locals are facing.”
The most expensive area in Australia according to the study was the Peppermint Grove area on Perth’s Swan River with a 44.1 ptir, followed by the Sydney harbour suburbs of Mosman 33.6 ptir, and Hunters Hill 32.6, and the Perth suburb of Cottesloe 31.6.
Conversely, the cheapest area in Australia identified by the study was the Dundas area in southern Western Australia at 1.2 ptir, followed by the South Australian opal mining town of Coober Pedy 1.5 ptir, the Central Darling region of NSW and Queensland 1.6 ptir, and the Western Australian mining region of Mount Magnet 1.6 ptir.
The Regional Australia Institute Good Life Guide is designed to help people find locations that suit their budget.
A simple dashboard compares key aspects of liveability across different Local Government Areas, highlighting the stark differences between urban and regional Australia.
These include median house price, median income, economic diversity, distance from the coast and national parks.
To access the Good Life Guide visit https://regionalaustralia.org.au/Web/Toolkits-Indexes/Good_Life_Guide.aspx