Housing shortages are preventing regional South Australian businesses from recruiting and expanding, according to the South Australian Business Chamber’s 2026 Regional Voice report, released last week.
More than half, or 53.4%, of regional businesses surveyed identified housing among the five biggest challenges affecting their businesses. That is up from 48% in 2024.
South Australian Business Chamber CEO Andrew Kay told SmartCompany some businesses were turning down work because they could not find enough employees.
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“They’re losing out on talent, but they’re also losing out on that ability to grow their business, potentially pick up new contracts, because they can’t expand,” Kay said.
“There are businesses who are closing or turning down contracts, turning down work, simply because they can’t find the workforce.”
Kay said the problem was widespread, affecting industries ranging from construction and agriculture to veterinary services.
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Employers have also reportedly been paying significantly higher wages to attract workers than comparable businesses in metropolitan Adelaide.
Kay said new homes were often too expensive for the workers regional businesses needed to attract.
No workers, no contracts
Kate Pierotti, of Wudinna-based earthmoving business Fineys Contracting, told SmartCompany housing shortages were making it difficult to recruit experienced machinery operators and truck drivers.
The business, which employs around nine people, undertakes roadworks, earthmoving and bulk haulage across the Eyre Peninsula.
Pierotti said the lack of short-term rentals made it difficult for workers to try living in Wudinna before committing to a move.
“They can’t just kind of come across and test it out and just get, you know, a small unit or something like that to live in for a few weeks, or a few months,” she said.
Instead, prospective employees often faced the prospect of relocating their families and furnishing an entire house before knowing whether the move would work.
Pierotti said staff shortages meant the business has had to pass up on work.
“We could do that job, but we just don’t have the personnel, so we’re not even going to try and do that job,” she said.
The company has largely relied on recruiting locally, although it recently hired a worker who relocated to Wudinna and was able to find accommodation. However, she notes that they did not have a family to bring with them.
Pierotti said more temporary housing could help prospective employees transition into regional positions, to then later make permanent moves.
She said the problem extended far beyond her business, with local farms also struggling to accommodate prospective workers.
The push for regional relief
Kay said regional businesses also faced higher insurance costs, unreliable telecommunications and inadequate infrastructure.
He called for South Australia to consider regional payroll tax concessions, similar to those available in Victoria and Queensland, to help offset higher employment costs.
He also suggested additional incentives for apprenticeships and traineeships.
“You’re missing out on economic growth, development, and further investment into those regions,” Kay said.
“It’s an issue that’s stifling regional growth in our economy.”