The Data Statistics and Numbers Behind Wollongong's Housing Affordability Crisis

Wollongong's housing market has seen a significant surge in prices over the past year, with the median house price reaching $1.2 million in June 2026, according to data from the NSW Valuer-General.

This matters now because the current housing affordability crisis is having a profound impact on the community, with many residents struggling to find affordable housing options. The Illawarra region, which includes Wollongong, is experiencing a severe shortage of housing supply, exacerbated by the transition of the BlueScope Steel site in Port Kembla to a renewable energy zone. This transition is expected to bring new jobs and investment to the region, but it also puts additional pressure on the already strained housing market.

In Wollongong, specific areas such as Keiraville, West Wollongong, and Figtree are experiencing significant growth in housing prices, with some properties selling for over $2 million. The University of Wollongong, a major driver of the local economy, is also feeling the effects of the housing crisis, with many students and staff struggling to find affordable accommodation. Organisations such as the Illawarra Shoalhaven Homelessness Hub and the Wollongong Homeless Persons Information Centre are working to address the issue, but more needs to be done to increase the supply of affordable housing in the region.

Key Statistics and Trends

According to data from the Australian Bureau of Statistics (ABS), the Illawarra region has seen a 25% increase in housing prices over the past 12 months, with the median rent for a three-bedroom house reaching $650 per week. The NSW Government's Illawarra Shoalhaven Regional Development Fund has committed $100 million to support the development of new housing and infrastructure in the region, but more investment is needed to address the scale of the crisis. As of June 2026, there were over 1,500 people on the waiting list for public housing in the Illawarra region, highlighting the urgent need for more affordable housing options.

So what happens next? The Wollongong City Council has committed to increasing the supply of affordable housing in the region, with a target of 30% of all new developments being allocated for affordable housing. The NSW Government has also announced plans to release more land for housing development in the Illawarra region, including a new housing estate in the suburb of Horsley. However, more needs to be done to address the root causes of the housing affordability crisis, including increasing funding for public housing and implementing policies to reduce housing speculation and increase affordability.