Hunter housing crisis: Urban Development Institute of Australia calls for $522m investment to unlock new homes and jobs in the Lower Hunter

It predicts that with the right planning and investment, the Lower Hunter is equipped to handle significant growth and become a major contributor to the country's economy.

The housing shortage is a significant issue for the region, UDIA Hunter chair Geoff Rock said, with its diverse economy and lifestyle drawing more people to the area.

"The challenge is, how do we capture the benefits of the global gateway being provided with the airport going international and the Newcastle container terminal while providing housing to people who can provide the skills to those industries?" he said.

"We are saying that every dollar spent on housing in the Hunter will give a better return on investment than elsewhere in the state - that's why we are calling for an infrastructure fund because the infrastructure isn't there."

UDIA has put together a manifesto with 13 objectives designed to tackle the housing shortage in the Lower Hunter.

It calls for a $500 million Hunter Enabling Infrastructure Fund to deliver the water, sewer, electrical and road infrastructure needed to unlock an 'existing pipeline' of 41,800 greenfield residential lots.

According to UDIA, the Lower Hunter has only received one per cent of state road funding in the last five years, despite being home to eight per cent of the state's population.

"If the Hunter's fair share was increased to the state annual average of $686 per person, the Lower Hunter should receive $429 million in state road investments every year," the report said.

"As a start, UDIA and our coalition partners are calling for $500 million to unlock the Hunter's housing and employment land pipelines identified in our Building Blocks report."

Mr Rock said the response from government is often to point out major spends on projects like the M1 to Raymond Terrace and the inner-city bypass.

"What we're saying is that those roads just move the existing population around the place, they're not adding to our ability to bring new housing stock," he said.

"Enabling infrastructure is where that spend needs to happen with a stronger focus on unlocking land that the Hunter needs."

The manifesto calls on the state government to introduce an incentive-based system for private developers to provide social and affordable housing, arguing rent controls or inclusionary zoning "only exacerbate the housing shortage and worsen affordability overall".

UDIA estimates that private developers could deliver two to three times the current supply of social and affordable houses depending on the level of incentives.

It also encourages planning development around transport hubs for greater efficiency on existing zoned and under-developed land, particularly around places like Lochinvar, Branxton and Greta.

Mr Rock said housing diversity is an important piece of the puzzle.

"We need to build density around train stations that can bring people into Newcastle where most of the jobs are but not add to congestion," he said.

"We will always need greenfield development, so we have to have a mix of product, but it's about being conscious of putting people into cars and adding to congestion."

The manifesto calls for a faster rail service with continuous WiFi between Singleton and Sydney and a commitment to fast-rail between the Hunter and Sydney to create the backbone for growing the Six Cities Region, a plan to bring together the Lower Hunter and Greater Newcastle, Central Coast, Greater Sydney and Illawarra-Shoalhaven to create a globally competitive region, as an economic powerhouse.

Mr Rock said the UDIA will continue to work with whichever government is in power after the state election in March.

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