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Queensland mining growth sparks rental pressure in key towns

Extended Stays site in Mackay

What’s happening?

Mackay’s rental crisis is now being seen as a cautionary tale for other Queensland resource towns.

A workforce boom and rapid mobilisation have tightened housing supply across the region. Workers and families are struggling to secure stable, medium term accommodation. Hotels and short term rentals are being used to plug gaps, but they are not designed for long stays. That strain is flowing through to local businesses and community services.

The pressures seen in Mackay are beginning to echo across other resource regions in Queensland, signalling what may lie ahead for towns entering their next phase of development.

Now, towns like Charters Towers are being urged to plan ahead as workforce numbers rise with projects such as CopperString.

Why it matters?

Housing shortages can disrupt families, slow workforce mobilisation and place pressure on essential services.

When private rentals are absorbed by project demand, long term residents face fewer options. Businesses can struggle to attract and retain staff. Community stability is affected over time.

Extended STAY Australasia, which has provided workforce accommodation in Mackay for almost two decades, says the lessons are clear.

“These housing pressures present a chance to get it right. By investing in smart, tailored accommodation solutions, we can support thriving local communities, keep projects on track, and build a strong foundation for sustainable growth,” said Damian Gallace, Managing Director, Extended STAY Australasia.

Local impact

Tight rental conditions are affecting workers, families and employers. Some businesses are feeling the strain when staff cannot secure suitable housing.

For Charters Towers, early planning around workforce accommodation could help protect local housing stock and support sustainable growth.

By the numbers

• Rental vacancy rates in Mackay have fallen below 1 percent, underscoring how limited housing availability has become.

• Extended STAY Australasia has operated in Mackay for almost 20 years, supporting workforce accommodation during previous growth cycles.

• Projects such as CopperString are expected to drive further workforce growth in regional Queensland towns like Charters Towers.

Zoom in

In Mackay, strong economic activity has created intense competition for existing rental stock. Short-term accommodation has been relied upon as a stopgap rather than a long term solution.

Over time, this approach places added pressure on families, small businesses and community services.

Industry operators say tailored workforce accommodation can reduce competition within the private rental market.

Zoom out

Across Queensland, resource and infrastructure projects are reshaping regional communities. Towns entering a new development phase face similar housing risks if supply does not keep pace with demand.

The experience in Mackay offers insight for growing centres such as Charters Towers.

What to look for next?

Watch how Charters Towers responds as workforce numbers increase. Decisions made now around accommodation planning may determine whether the town avoids the housing squeeze seen in Mackay.

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