Business Illawarra has today released its Homes for Workers 2026 Policy Report 2026, calling for urgent action to ensure workers can live locally and businesses across the Illawarra, South Coast and Southern Highlands can continue to grow.

The report identifies 11 game changing opportunities to unlock housing supply and urges immediate NSW Government investment and planning reform to address critical workforce pressures.-changing opportunities to unlock housing supply and urges immediate NSW Government investment and planning reform to address critical workforce pressures.

Director of Business Illawarra, Coralie McCarthy, said housing availability has become one of the most significant barriers to workforce recruitment, retention and regional economic growth.

“Workers need somewhere to live. Without housing, businesses can’t grow — it’s that simple.” Coralie McCarthy, Director, Business Illawarra

Examples of priorities highlighted in the report include:

• Transforming Nowra CBD through a coordinated planning and investment package to finally move from strategy to delivery.

• Investing in enabling infrastructure, including the West Dapto Ring Road, Nowra–Bomaderry utilities, and addressing ongoing shortfalls in Mittagong and Colo Vale.

• Accelerating social and affordable housing precincts at Bellambi, Gwynneville and Bomaderry–Nowra to support essential worker access to homes close to jobs.

• Recognising childcare as critical economic infrastructure to support workforce participation.

Ms McCarthy said the region urgently needs aligned transport, planning and infrastructure investment to keep pace with population and industry growth.

“In the Illawarra, South Coast and Highlands, the number of women aged 25–44 in employment has almost doubled over the past five years, yet more than 70% of local families remain in a ‘childcare desert’. In some areas, there are three young children for every one childcare place. Childcare is now a frontline workforce issue, housing and access to essential services must go hand-in-hand if we want people to be able to work.”

She also stressed the importance of moving quickly on key housing precincts:

“Delivering mixed social and affordable housing in Bellambi, Gwynneville and Bomaderry–Nowra is critical to ensuring long term housing close to major employment hubs. These precincts must be accelerated.”-term housing close to major employment hubs. These precincts must be accelerated.”

And on Nowra: “Nowra has been identified as a key regional centre for decades, but delivery has stalled due to fragmented planning and inconsistent investment. The opportunity is enormous and coordinated action is needed to deliver confidence to the private sector to invest”

The full report is available here: Homes For Workers Policy 2026 Report

Media Contact

Coralie McCarthy

Director, Business Illawarra

M: 0417 431 564

E Coralie.McCarthy@businessnsw.com

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About Business Illawarra

Business Illawarra is the region’s peak business organisation; a not-for-profit advocacy group dedicated to the economic development of the Illawarra, Shoalhaven and Southern Highlands. On behalf of our members, we develop policy and are the leading voice representing business across the region.

Business Illawarra is owned and supported by Business NSW, the state's leading advocacy voice for business across NSW. Of the few enduring, independent, not-for-profit organisations in Australia, Business NSW is the only one focused on the wellbeing of the business community. Our purpose has always been to provide a strong advocate to all levels of government on issues affecting businesses, undertake research to guide greater public and private sector investment in economic infrastructure, and support the development of workforce capacity and skills in our region.