Published on Friday, 5 June 2026 at 9:04:29 AM
The Town of Port Hedland has taken a major step in tackling the critical housing shortage by endorsing a $40 million Key Worker Housing Project in South Hedland.
At the May Ordinary Council Meeting, Elected Members endorsed a design and construct tender to TLC Modular for the Cottier Drive project.
The project represents an innovative intervention to deliver affordable housing for essential workers, supporting the long-term sustainability of local services and the regional economy.
Mayor Jacinta Behrend said the project reflected Council’s commitment to addressing one of the most significant challenges facing the community and was a direct response to the community’s feedback.
“The housing shortage is having a direct impact on service delivery in sectors such as childcare, hospitality, retail and local government, while also acting as a constraint on broader economic growth and community liveability,” Mayor Behrend said.
“Our community has been clear for some time that access to affordable housing is a top priority.
“This project is a practical and targeted response that will support local workers and strengthen our town’s future.”
Town officers have undertaken comprehensive assessments of design and construction options over the last few months to ensure the project meets legal requirements, delivers appropriate risk allocation, and achieves long-term sustainability outcomes.
The decision follows several years of strategic planning, with Council first prioritising key worker housing in its Long-Term Financial Plan 2022–2037.
Since then, officers have engaged with local community groups and essential service providers to ensure the project aligns with their needs.
Port Hedland’s housing challenges are driven by market conditions in the Pilbara, where the high cost of construction significantly exceeds achievable affordable rental returns, limiting private sector investment without government intervention.
In the Town’s 2025 MARKYT Community Scorecard, 87% of respondents rated access to affordable housing as “poor” or “terrible” - up from 73% per cent in 2023 and 66% in 2021.
Delivery timeframes for the project will be confirmed following contract execution, detailed design and construction planning with TLC Modular. A tenancy eligibility framework and allocation criteria will be determined in conjunction with the preferred operator of the facility and brought back to Council for final approval.
The Town has secured $17.5 million for the project from external sources, including funding from the State Government through the Infrastructure Development Fund, the Hedland Maritime Initiative, and BHP.
The Town will continue to investigate other funding avenues for this important project.
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