Housing has been an issue in Daylesford for years, with short-stay rentals and holiday homes creating a lack of supply.
The council moved to address this in 2023, and since then local agents say it’s changed the way the market looks, with a new demographic of residents moving in.
What happened? In 2021, a Hepburn Shire council report found pensioners, individuals escaping family violence and local workers were struggling to find homes on both the rental and purchasing market.
The 2021 Census estimated the population in the shire was forecast to grow to 17,000 by 2036. It also showed there were 2,000 unoccupied houses in the region. At the time, this was twice the rate of the Victoria average.
Taking action: Two years later, Hepburn Shire Council identified the problem and published a report based on community engagement and research that ultimately recommended a series of actions to rectify the crisis.
The tourism problem: Daylesford is home to almost all of Australia's mineral springs, and is known in the region as “spa country”. Tourism is integral to the local economy.
Image: Visit Victoria
Statistics collected through the Mineral Springs Master Plan 2025 - 2032 showed the region saw $612 million in tourism spend in the year ending December 2024.
Tourism additionally created more than 5,700 jobs.
Between 2022 and 2023, tourism accounted for just under 10 percent of the region’s economy.
The council’s report found that roughly 10 percent of the shire’s dwellings were listed online as accommodation or Airbnb rentals.
The market today: Will Walton, Director at Belle Property, said that Daylesford does have a “strong tourism brand” attached, but post-COVID, it has become more attractive to young professionals to live.
“It made people realise there's flexibility in the workplace and employees have adjusted their thinking,” he told the Brolga. “It’s a little bit like living in the inner city, but in the country.”
He cited a recent young buyer he worked with that had been searching for a home in Collingwood, but elected to make the switch to Daylesford because a multiple-bedroom home with a backyard was the same price as a metropolitan one-bedroom apartment.
“In the last few weeks, there’s been a lot more stampede of buyers turning up to inspections, and price adjustment from sellers in the region,” he said. “Vendors that are happy to meet the market”.
In terms of the rental market, Walton cited the same young professionals making the move and creating demand for more “high-end” rentals, rather than entry-level properties.
“Previously, a home wouldn’t go on the market, it would just be an Airbnb,” Walton said. “Now we have more professionals moving to regional areas to try before you buy, so there’s more demand for rental property than before”.
Image: Visit Victoria
Another take: Kim McQueen, from McQueen Real Estate, told the Brolga the government has “done everything in its power to de-incentivise anyone owning a property as an investment”.
McQueen said 70 percent of her buyers previously had an “investment component”, and “wanted it as 100 percent an investment of Airbnb or holiday let.”
“Now, that would’ve dropped to 5 percent. Most of our buyers are looking for homes, or holiday homes.”
She told the Brolga there is now a lot of stock on the market, because “people are offloading investment properties because it’s become too expensive”, and “that coupled with the very sluggish market in Victoria means there’s a lot on offer”.
New digs: Middleton Field is a new suburb on the edge of Daylesford township, developed largely by Hygge Property. Land was first available for purchase in 2022.
Developers Laura and Joseph van Dyk are the West Vic couple behind Hygge Property. They previously told the Brolga there was initially pushback to the development from long-term residents with concerns new homes would impact the region’s character.
But after community consultation and construction began, attitudes shifted.
“We got a lot of positive feedback and a lot of people reached out to us to be like, ‘how amazing to be able to have this in our small town’,” Joseph said. “I think we’ve been around long enough now that we’ve been accepted.”
What people said: Annette Death, the Labor candidate for Macedon, said “every Victorian deserves a safe, secure place to call home”.
“We know regional rental markets like Daylesford are under pressure, and that's why we're building more social and affordable homes across the state, not just in Melbourne.” Death went on to cite the Affordable Housing Rental Scheme.
Marley McRae McLeod, the Greens candidate for Macedon, said affordable housing is a key priority for her, and the party “stands steadfast with renters and doesn’t just acknowledge housing as a human right, but fights for it”.
“It is concerning that young people often cannot afford to live where they work. Knock on effects include extra unnecessary travel and associated costs - not just financially, environmental also. This is an important issue for me personally.”
The Brolga also reached out to Liberal candidate Kate Kendall for comment.
Header image: cozycozy.com