Ballooning house prices and a lack of rentals have already wreaked havoc on the pubs and restaurants of the south-west Victorian tourist town Port Fairy. Key points Long-term rentals have almost disappeared in Port Fairy, with about half the town’s houses estimated to be short-term rentals and holiday houses The town’s median house price rose from $600,000 to $990,000 in the past five years The lack of affordable housing is linked to declining enrolments at the two local primary schools Businesses have closed or adjusted opening hours due to a lack of staff, diminishing one of the very attractions that brings people to the town in the first place. But a lack of available housing is also driving young families from the town and is reflected in a drop in enrolments at Port Fairy’s two primary schools. On census night 2021, just over a third of all houses in Port Fairy were recorded as empty, but the true number may be even higher. A Moyne Shire Council spokesperson estimated that in 2023, about half the houses in Port Fairy were used as short-term rentals and holiday homes. Finding somewhere to live in Port Fairy has become a problem for young families, workers and employers. South West Victoria Daniel Miles Long-term rentals have disappeared ” at last check there were just two listed in the entire town, which has a population of almost 3,500. Meanwhile, the median house price in Port Fairy has skyrocketed from $600,000 five years ago to $990,000 now, according to realestate.com.au. Olga Lyons says a lot of families have been priced out of the local housing market. Supplied St Patrick’s Primary School “The cost of buying a house in … Port Fairy is quite expensive,” St Patrick’s Primary School principal Olga Lyons said. “It’s obviously out of reach of a lot of families.” This was reflected in enrolments at St Patrick’s, she said. About five years ago, the school expanded its facilities, leading to a living-memory peak in the number of pupils enrolled at the school. But since that 2020 high of 206 pupils, the school’s population has steadily dropped, with 182 students expected in 2024. St Patrick’s Primary School expects to have 182 pupils next year, down from a total of 206 in 2020. South West Victoria Daniel Miles Enrolments at St Patrick’s Primary School, Port Fairy 2020 206 pupils 2021 200 pupils 2022 198 pupils 2023 188 pupils 2024 182 pupils expected “We’re getting our fair share of the enrolments from the kindergarten, it’s just that the children are not there,” Ms Lyons said. “It indicates that there’s a decline in the number of young families in the region.” She said shrinking enrolments led to shrinking budgets, which affected staffing levels and class sizes. “Next year, we’re looking at having to have larger classes and less staff,” Ms Lyons said. A diminishing generation It is understood to be a similar story at Port Fairy Consolidated School. While the principal declined to be interviewed, they provided figures showing a similar reduction in enrolments. Enrolments have dropped at Port Fairy Consolidated School. South West Victoria Daniel Miles Port Fairy Consolidated School enrolments 2019 211 pupils 2020 209 pupils 2021 201 pupils 2022 196 pupils 2023 199 pupils The number of pupils at the school has dropped by 12 ” which is more than 5 per cent ” since 2019. That means the enrolments across the two schools have decreased by 28 pupils, or almost 7 per cent, between 2020 and 2023. The numbers reflect a continuing downward trend in young people in Port Fairy. According to the 2006 census, 16 per cent of the town’s population was aged under 14 ” in the 2021 census, that percentage had dropped to 12 per cent. Port Fairy’s businesses have struggled to attract enough staff. South West Victoria Daniel Miles Up the road in Koroit, which has about half the population and a median house price of $620,000, one in every five residents is aged under 14, according to the 2021 census. Fears for the future Port Fairy’s housing problem stems in part from its geography ” the tourist town is hemmed in by ocean on two sides, while the remaining landscape is dominated by a river, swamps, and a bluestone landscape that makes undergrounding services expensive and difficult. The median house price in Port Fairy is almost $1 million. South West Victoria Daniel Miles Ms Lyons said that without more affordable housing or land opening up in Port Fairy, the town’s future looked grim. “If houses continue or even maintain at the cost that they are, it’s going to be difficult for families to stay in the area,” she said. “I do have fears for the future of the town as a young, vibrant community.” Moyne Shire Mayor Karen Foster said it was a worrying trend, and a problem that was on the council’s radar. Karen Foster says the drop in school enrolments is worrying. Supplied “We know lots of families would love to move here but can’t find accommodation,” Cr Foster said. “Families and young people are a critical part of any community ” they give it life and vibrancy. “We want to keep this town alive [but] already it’s difficult to find young people to fill sporting teams and be volunteers. “It has huge ramifications for the community for the future.” Loading… If you’re unable to load the form, click here . on Australia’s housing market ‘Mismatch between supply and demand’ sends house prices soaring Here’s what the housing market looks like where you live Australia’s housing crisis in 10 graphs, from the federal budget Find more local news Browse for your location and find more local and information