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Currarong is a key holiday destination in the Shoalhaven.

Shoalhaven mayor Amanda Findley said the situation was so dire,however,that even if their similar letter were to push just a dozen houses onto the long-term rental market,it would help. Shoalhaven is home to almost 13,000 ghost houses – about 22 per cent of the region’s homes are unoccupied. Rental vacancy rates in the area have fallen from 5.1 per cent in 2019 to just 0.9 per cent last month.

Findley said the council was also considering other urgent ways to make more housing available,including by possibly increasing council rates for empty houses,to make investing in short-term accommodation less attractive. She said there were 4,000 properties in the Shoalhaven listed for short-term accommodation.

“Ten years ago,when you bought an investment property,a long-term rental was what was on your mind. But the[growth of holiday letting platforms] has driven people to think they can have the best of both worlds:a place they can use themselves,while also earning $50,000 a year.

“It’s had a remarkable impact on[housing] availability. And it completely hollows out the suburbs. You can walk down streets in the Shoalhaven in winter where there are no lights on because no one is home.”

Bega Shire is also considering writing to owners of empty houses,although its mayor Russell Fitzpatrick said a similar exercise after the bushfires had not produced nearly enough homes to meet demand. His focus was on building new homes in the area as quickly as possible.

The housing crisis gripping regional NSW threatens to change the fabric of country towns,as long-term residents are priced out and key workers contemplating a move to the area struggle to find housing.

In Shoalhaven,42.3 per cent last year of renters are now under housing stress,spending more than 30 per cent of their household income on rent. That is almost seven percentage points higher than the state average.

Findley said the state and federal governments needed to step up to provide more social housing,as well as accommodation for workers like doctors and nurses. “We’re going to have a hospital redevelopment here for just under $500 million,but there are no homes for those staff to live in unless the government actually builds those homes.”

Community Housing Industry Association chief executive Wendy Hayhurst said the regional housing crisis was affecting people who would normally easily secure housing,and this was putting extra pressure on the already-stretched social housing sector.

“People who might have been able to solve their problems in the private market now can’t,” she said. “It’s beginning to impact people who would never have expected to have an issue. They’re saying,‘I’m holding down a decent job,why can’t I find somewhere to live’ and they’ll be competing with other people who have never had another choice[but the lower end of the market].”

Eurobodalla,which includes the holiday towns of Batemans Bay,Narooma and Moruya,has the highest number of unoccupied homes in the state. More than one in four are empty.

Hatcher said his letter to these homeowners last month had resulted in more than 150 calls and emails to council,and about 30 people had said they would put their home up for rent,or had already done so.

Local real estate agents,however,said while the letter had prompted calls from owners,the inquiries had generally not led to listings. Many owners did not know what to do with their furniture,or still wanted access to their properties during the warmer months,or to be able to return to short-term letting in the peak season.

Tenants also worried the houses would not be a secure long-term option,and many large holiday houses were not suited to tenants looking for affordable housing. One agent said holiday homes could be a good option for temporary workers who were in the area for a few months,and had told owners she would put their properties forward for this purpose.

Clarification:An earlier version of this story said about 10 per cent of Shoalhaven renters were spending more than 30 per cent of their income on rent in 2016. That figure was based on all households,not just renters.

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