Insights

How to plan for regions that aren’t growing

by | 16 Sep 2025

The unacknowledged challenge that many LGAs are facing.

Much of the land use planning conversation in Australia focuses on booming regions and addressing the housing shortage that comes with high growth. But in some regional areas of Queensland, councils are grappling with the opposite problem: how to plan for areas where growth is flat or declining.

Planning for no growth presents unique complexities. Instead of managing rapid expansion, some councils are struggling to attract people, investment, employment opportunities and support services, as well as make use of restricted infrastructure — all with limited funding and constrained delivery options.

They said to us, ‘We think it’s actually harder to plan for no growth than it is for rapid growth.’ And I agree.
Kate Burke

Director, PSA Consulting

Planning gets complicated when growth stalls

PSA is helping shape long-term plans for communities where growth has stalled. These places often face intersecting challenges:

ChallengeImpact
Ageing populationRising demand for aged care and accessible housing
Seasonal population surgesShortages in temporary and tourist accommodation
Weak housing pipelineLimited developer interest and market viability
Single-industry economiesVulnerability to market or climate shocks

For example, the populations of some regional agricultural towns swell by up to 20% during picking seasons. Lack of temporary housing can force workers into caravan parks and other short-term accommodation – which limits availability for tourists.

Meanwhile, long-term trends in these regions often show populations that are ageing and shrinking. With an inconsistent (but still declining) population, service delivery and infrastructure planning become more difficult.

Strategies can only do so much

“Planning can facilitate, but it can’t force outcomes. We need realistic pathways for implementation.” – Kate

In regions with limited funding and minimal developer interest, even well-prepared strategies may not translate into new homes. Infrastructure provision and costs can often be the limiting factor. 

We’re working closely with several regional councils who have received Commonwealth housing support funding to develop plans to unlock future housing supply within these regions. Provision of critical infrastructure will influence the ability of some towns to grow. Many regional councils are not equipped to fund the infrastructure needed to support housing delivery and require assistance.  

Minimal funding, minimal progress

“Without help to fund the critical infrastructure needed to catalyse development, nothing moves.” – Kate 

Federal programs like the Housing Support Program (HSP) are in place to support the delivery of increased housing supply by funding projects that seek to deliver enabling infrastructure, as well as provide amenities to support new housing development or improve building planning capability.

While Stream 1 of the HSP provides funding for projects that will improve planning capability, the Community Infrastructure Enabling Stream of the HSP provides funding for enabling infrastructure and community amenity projects. However, there is no guarantee that councils will receive the infrastructure funding needed to facilitate the delivery of housing, even if the planning has been completed.

This is where many smaller regional councils get stuck. They may receive millions in general-purpose grants each year, but those funds are stretched across roads, waste, community services and basic maintenance. They’re not necessarily designed to cover major infrastructure upgrades that enable things like new housing.

What we need to see

“Even just one or two small wins can signal progress and build support.” – Kate

To make a real difference in low- or no-growth areas, planners, councils and government should prioritise:

1. Making strategies
fundable

Low-growth councils need strategies that can be used as advocacy tools and double as business cases – showing what infrastructure is needed and the returns it could enable.

3. Supporting high
impact pilots

One new development, one adapted facility or one tourism asset can create momentum. Small actions matter more when growth is slow.

2. Focusing on essential infrastructure

Even without growth, infrastructure like safe road access, sewer and water still need funding. These support liveability and can better enable growth when the opportunity arises.

4. Redefining
success

For many towns, stability is a win. Maintaining population and jobs, and keeping quality services running, should be seen as legitimate and valuable outcomes.

FAQ

Why can planning for decline be more difficult than growth?

Because it also requires attracting demand. Services, infrastructure and market interest are often lacking, so it’s harder to incentivise development.

What role do planners play in low-growth regions?

Planning can set up funding bids, attract investment, and guide future development – but it can’t deliver housing without implementation support.

What types of support do councils need?

Councils need help funding enabling infrastructure and getting small projects off the ground – as well as policy flexibility to test new housing models.

What’s the risk of doing nothing?

Continued population loss, service reduction and declining economic viability. As the population ages and shrinks, councils risk a spiral of disinvestment.

Explore how PSA is working with councils across Australia to turn housing strategies into housing outcomes.