A vital Australian industry is calling out for help with housing

Without innovative housing solutions in the regions where this workforce is concentrated, Australians across the country might start to notice a change when they visit the grocery store.

Dairy is the nation’s third largest rural industry and a key sector of the agricultural economy. Victoria is the nation’s biggest dairy producer, with dairy businesses concentrated in the three key regions of Gippsland, south-west Victoria and northern Victoria.

Jenny Wilson, general manager of The Gardiner Foundation, which supports the Victorian dairy community, explained that together those key regions amount to a $3 billion industry with roughly 20,000 associated jobs. 

And across those businesses, one of the biggest issues currently impacting business decisions is the ability to attract skilled workers.  

The major deterrent to working in Victoria’s dairy producing regions? Access to housing. 

It’s why the Gardiner Foundation has just launched an Expression of Interest (EOI) process to identify innovative housing solutions for Victoria’s dairy regions, calling on developers as well as investors and government bodies to come up with ideas to create new housing in these areas and increase the diversity of stock currently on offer. 

According to Ms Wilson, the housing issue is getting so severe for the dairy community that it’s changing the very nature of how the industry does business. 

“A dairy farm business might be able to attract a worker, but then the question they are often asked is ‘do you know of any housing or rental accommodation that could be available to me?’” she said. 

For both a single worker looking for a small dwelling suitable for one, or a family relocating to the area in need of a three- or four-bedroom house, the challenge is equally daunting. 

According to PropTrack’s 2025 Rental Affordability Report, the average rental price in regional Victoria has increased $120 per week over the March 2020 quarter to the December quarter of 2024. 

PropTrack’s research on rental prices in March 2025 now puts in the state’s non-metro areas at $470 per week. And that’s if suitable accommodation can be found, with vacancy rates very tight across the key regions. 

“It is having an impact on a lot of businesses, and for the dairy industry, we have examples of where they haven’t been able to attract or retain that workforce because of housing, and it’s meant that they’ve either downsized their operation or have looked to install even more technology and robotics. But that doesn’t really solve the problem necessarily. It just shifts the problem to a different type of workforce that you need to then house,” Ms Wilson explained. 

In severe cases, she said that some businesses have looked to exit the industry, while the Gardiner Foundation says there are increasing reports of businesses shouldering the cost of housing for workers, putting a financial strain on their operations and limiting industry growth. 

“Just being able to attract skilled workforce does ultimately have an impact on whether or not you have Australian dairy products available to [consumers] or increasing imported products from overseas,” Ms Wilson noted. 

While the immediate focus of the EOI is on addressing the strain on dairy production, it’s hoped that practical housing proposals in these regions could serve to bolster the towns and commerce centres that surround these farming businesses, delivering a broader economic impact. 

As George Housakos from Cushman & Wakefield, who has been appointed to execute the EOI process for Gardiner Foundation noted, “affordable housing is essential for community sustainability”.  

“Gardiner Foundation’s initiative to support innovative housing solutions in Victoria’s dairy regions will not only encourage much-needed housing, but aims to stimulate local economies and foster community development,” he said. 

More details of the EOI can be found via Gardiner Foundation. 

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