Project overview

Why affordable housing matters in Hedland

Affordable housing is about more than having a place to live. It helps keep local workers in town, supports local businesses, strengthens our economy, and makes Port Hedland a more vibrant and liveable community.

Right now, the lack of affordable housing is one of the biggest challenges facing Hedland. It's making it harder to attract and keep the workers our community relies on every day, and it's limiting opportunities for local businesses to grow and invest.

The Town has identified affordable housing as a key priority over the next five years because it plays a critical role in supporting future growth and ensuring Hedland remains a great place to live, work and raise a family.

Meeting a growing housing need

Affordable housing is becoming increasingly difficult to find, especially for essential workers such as teachers, childcare workers, hospitality staff, retail employees, and support workers.

High rents and limited housing supply are forcing some people to leave town or choose not to move here at all.

Port Hedland currently has around 1,000 fewer essential workers than would normally be expected for a town our size. Without action, that shortfall is forecast to grow to around 1,400 workers by 2031.

Supporting the services our community depends on

When workers can't find affordable housing, it affects services we all use every day.

Schools, childcare centres, shops, hospitality venues, community services and support providers all rely on staff being able to live locally. Housing shortages make it harder for these services to recruit and retain workers, which can lead to reduced services, limited opening hours and increased pressure on existing staff.

Helping local businesses and the economy

A lack of affordable housing is also holding back economic growth.

Businesses across Hedland are finding it difficult to attract and retain staff. This can mean more reliance on FIFO workers, more work being outsourced, and fewer opportunities for local businesses to expand.

When employers can access a stable local workforce, they have greater confidence to invest in new services, restaurants, shops and other amenities that make Hedland an even better place to live.

Responding to community feedback

Housing affordability continues to be one of the issues residents raise most often with the Town.

Community surveys show growing concern about access to housing:

  • 66% of residents rated housing access as poor or terrible in 2021
  • 73% in 2023
  • 87% in 2025

This project directly responds to that feedback by increasing the supply of affordable homes for local workers.

A practical, long-term solution

The Key Worker Housing Project will deliver new affordable homes in South Hedland for low to moderate-income workers.

The project aims to:

  • Increase the supply of affordable housing
  • Provide rent-controlled homes for key workers
  • Support a more stable and permanent local population
  • Help essential workers build their lives in Hedland

A responsible and low-risk approach

The Town has undertaken extensive planning to ensure the project is delivered responsibly and sustainably.

Independent legal advice has been obtained, several operating models have been assessed, and a Community Housing Provider model has been identified as the preferred approach.

Under this model, a specialist housing provider would manage tenants and day-to-day operations, while the Town maintains oversight of eligibility criteria, rental settings and priority worker groups.

This approach helps ensure housing is allocated fairly, transparently and to the people who need it most.

Financially responsible and supported by partners

The project has been designed to minimise the financial impact on ratepayers.

Key facts include:

  • Total project cost is approximately $40 million
  • More than half of the funding will come from external partners, including government and industry
  • The Town's contribution will be funded through existing revenue, with no new debt required

In summary

The Key Worker Housing Project is a significant opportunity to address one of Hedland's biggest challenges.

By increasing the supply of affordable housing, the project will help:

  • Keep essential workers in our community
  • Support local services and businesses
  • Improve liveability for residents
  • Encourage economic growth and investment
  • Deliver long-term benefits in a financially responsible way

Ultimately, it's about making sure the people who help our community thrive can also afford to call Hedland home.

Housing by the numbers

  • Relative to regional WA, there is a current deficit of 1031 service workers in Hedland. Without intervention, this is expected to increase to 1444 by 2031.
  • Average rent across Port Hedland is $1000 per week compared to $544 across regional WA.
  • Average rents have increased 20% p.a in Port Hedland and 36% p.a in South Hedland since 2020.
  • Housing supply has grown 0.2% p.a since 2017.
  • There have been nine building approvals in the Town of Port Hedland between June 2022-April 2023.
  • $7.2 billion in aggregate capital expenditure for large new infrastructure projects is expected to further exacerbate the issue in the coming years.

    Community impact assessment

    The Town commissioned a Socio-Economic Impact Assessment which articulates the benefits of the South Hedland Service Worker Housing project.

    It illustrates the following benefits to the Hedland community:

    Economic

    • $19 million increase p.a to the Port Hedland economy
    • $152.4 million in total benefits to the Hedland community
    • $16.6m in labour cost savings
    • 2.5% reduction in rental prices

    Community

    • The project has the potential to reduce the social and community service worker gap by circa 12.6%, alleviating pressure on community services including childcare and NFP sectors.
    • The project has the potential to unlock an enhanced offering of rental services via the expansion of operating hours and/or the delivery of new, or extension of existing, anchor or specialty stores.
    • The project has the potential to provide additional volunteering with a value equivalent to $70,230 p.a to the Town of Port Hedland.
    • A more stable and permanent resident population will enable the development and/or reestablishment of community groups and services in addition to contributing to greater business confidence.
    • The project has the potential to further increase community diversity.
    • Local participation in sport to increase by 100 people.

    More information

    News Story - Key Worker Housing project receives State Government boost » Town of Port Hedland

    News Story - Council endorses $40m key worker housing project » Town of Port Hedland

    News Story - Town welcomes funding for housing project » Town of Port Hedland