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However, Townsville-based HIA executive John Futer continued to warn the region was not building enough homes to meet demand which would only exacerbate problems of unaffordable housing for sale or rent.

He said the problem could get so severe that Townsville, which had developed as a base for fly-in fly-out trade to remote mine sites, could itself become a fly-in fly-out centre.

The association released its HIA Population and Residential Building Hotspots report this week showing Victoria, where government charges are lower and housing is more affordable, contains 10 of the top 20 SLAs in the country.

Condon, Rasmussen, Bohle Plains were one of six Queensland SLAs and the only one in regional Queensland in the top 20.

According to the report, Condon, Rasmussen, Bohle Plains recorded 555 building approvals worth about $145 million in 2008-09 with a population growth of 7.9 per cent.

The report also showed the statistical districts based on Townsville and Cairns were the worst affected districts in the State with slumps in building approvals of 52 and 53 per cent respectively in 2008-09 compared with the previous year.

This was worse than the Gold Coast (-41 per cent), Sunshine Coast (-27 per cent) and Wide Bay Burnett (-41 per cent) - all areas generally regarded as having been hit hardest by the impacts of the global financial crisis.

Mr Futer said the areas of Condon, Rasmussen and Bohle Plains contained large tracts of more affordable land which tended to attract first home buyers and people moving into the city.

''Yes there are growing areas but it's far from having a large impact on the numbers of houses that we need,'' he said.

''We need to increase our stock.''

Mr Futer said if the region continued to under-supply the market, problems of high house prices and rental rates would continue.

He said that often meant young people having to remain in the family home and over-crowding.

''Townsville becomes an unaffordable place to live and eventually people will have to go elsewhere for cheaper housing,'' he said.

Mr Futer said some people already were flying in and out for work at Townsville.

Source: Townsville Bulletin - TONY RAGGATT