Why housing affordability is becoming a healthcare workforce issue

Australia’s housing affordability crisis is often discussed as an economic issue. Increasingly, however, healthcare leaders are being forced to view it as a workforce issue.

As housing costs continue to rise and cost-of-living pressures intensify, healthcare organisations across the country are facing growing challenges attracting, retaining, and supporting staff. The impact is being felt across metropolitan, regional, and rural communities, where workforce shortages are already placing significant pressure on service delivery.

The Australian Nursing and Midwifery Federation (ANMF) says housing affordability pressures are increasingly affecting healthcare workers across the country.

“They’re being forced to commute long distances to get to and from work because they can’t afford to live in the communities they serve,” ANMF Federal Secretary Annie Butler says.

Butler says accelerating rents and a lack of affordable housing supply are creating additional financial pressure for many healthcare workers, contributing to “stress, burn-out and attrition across the health and aged care workforce.”

Recruitment and retention challenges are growing

According to Leanne Clavan, Director of Operations at We Are HR, housing affordability is increasingly influencing career decisions across the healthcare sector.

“We’re seeing housing affordability and rising living costs directly impacting the ability of healthcare workers to live near their workplaces, particularly in metro and high-growth areas,” Clavan says.

Healthcare workers are increasingly being forced to weigh career opportunities against affordable living arrangements, with some choosing to leave the sector altogether.

“Many are choosing to leave the sector for higher-paying jobs in other industries that offer better work-life balance or lower living expenses,” she says.

The challenge is particularly evident in aged care and regional healthcare settings, where workforce shortages have existed for years and housing constraints are adding further pressure.

“Rural and remote regions are feeling this even more acutely – it was already difficult to attract and retain staff, and the lack of housing options is making it significantly harder,” Clavan says.

The operational impact extends beyond recruitment

While recruitment challenges are often the most visible consequence, the operational impacts can be equally significant. Healthcare workers are increasingly factoring commute times, transport costs, flexibility, and relocation support into employment decisions.

“We’re also hearing from business leaders that staff are leaving roles because the total time and cost of commuting, particularly with rising fuel prices, no longer makes the job viable,” Clavan says.

In regional and hard-to-staff areas, housing shortages and rising living costs are compounding existing workforce challenges. Providers are increasingly relying on agency staff to fill gaps, sourcing accommodation support to attract and retain workers, and managing the operational pressures that come with ongoing staffing shortages.

“Providers are having to rely more heavily on agency staff, which significantly increases costs and disrupts care continuity,” Clavan says. 

“In metro areas, longer commutes are contributing to higher absenteeism, fatigue risks, and reduced performance.” 

What healthcare leaders can do now

While housing affordability remains largely outside the control of healthcare organisations, leaders can take practical steps to improve workforce sustainability.

Clavan argues that housing affordability and cost-of-living pressures should be viewed as workforce sustainability issues rather than solely individual employee concerns.

“Healthcare leaders need to treat housing affordability and cost-of-living pressures as strategic workforce risks, not just individual employee issues,” Clavan says.

Practical strategies may include relocation support, housing-related incentives, more flexible rostering arrangements, and using workforce data to identify turnover risks linked to commuting and financial stress.

Leadership capability also remains critical.

Clavan says organisations should consider “investing in leadership development, particularly for clinicians transitioning into leadership roles, to help them better support and retain their teams during challenging times.”

The bottom line

Housing affordability is not typically viewed as a healthcare issue. However, as workforce shortages continue and economic pressures grow, its impact on recruitment, retention, and workforce sustainability is becoming increasingly difficult to ignore.  

“There is no single silver bullet for these widespread economic challenges,” Clavan says.

However, organisations that recognise and respond to these pressures may be better positioned to build stable workforces, improve staff retention, and maintain high-quality care delivery into the future.