Pilbara Housing Supply Office

The Pilbara is entering a period of unprecedented economic expansion, with nearly $270 billion in capital expenditure committed or planned across the region by the mid-2030s. Key developments — such as green iron processing at Boodarie near Port Hedland and ammonia and hydrogen production at Maitland near Karratha — are set to transform, diversify, and decarbonise Western Australia's economy.

To support this massive industrial growth and the workforce that comes with it, regional housing supply must expand.

Cumulative impact modelling for Karratha and Port Hedland indicates that if all planned projects are delivered, Karratha will require approximately 1,800 new homes and Port Hedland will need 1,500 by the mid-2030s.

To proactively meet this challenge, the State Government established the PHSO in December 2025.

Operating as a two-year pilot backed by a $1.3 million State Government investment, the PHSO acts to identify, prioritise, and coordinate housing and land development opportunities across the region.

The PHSO is a joint initiative between the Pilbara Development Commission and the Department of Treasury and Finance.

Understanding the Pilbara housing market
While housing cost and availability are pressing issues across all of Western Australia, the Pilbara market faces a unique set of structural challenges that differ significantly from metropolitan Perth:

  • Land Supply: Residential land in South Hedland and Karratha is highly constrained. Currently all residential land developments in the Pilbara are undertaken by the State through DevelopmentWA and need a subsidy due to high costs.

  • Cost of building: The cost of labour and materials has increased over the past four years with an average build cost, in the Pilbara, for a standard 4x2 of $850,000 plus land of $200,000 (i.e. $1.05m) with market value sitting at $850,000 to $900,000.

  • Finance: Access to competitive finance is difficult due to formulaic risk profiling of the region. Large cash deposits are required (often more than 20 per cent), and there is a degree of reluctance to lend.
  • Insurance: Analysis by the Australian Competition and Consumer Commission shows that insurance premiums in north-west Western Australia for properties in medium to high cyclone risk areas — such as coastal towns in the Pilbara — remain very high and continue to pose a significant affordability challenge.

      What the Pilbara Housing Supply Office is doing
      With staff based on the ground in both Port Hedland and Karratha, we are working locally to address these challenges.

      We are partnering with DevelopmentWA, the Department of Housing and Works, the Department of Planning, Lands and Heritage, local government authorities, financial institutions, and industry stakeholders, to unlock land and smooth the path for residential delivery.