The City of Karratha has decided to partner with builders and developers and invest up to $35 million of ratepayer funds to boost local housing stock for an expected industrial boom next year.

Key points: The council is hoping that by helping kickstart the housing market it can keep rent and home ownership affordable

The council is hoping that by helping kickstart the housing market it can keep rent and home ownership affordable $65 billion worth of industrial projects are expected to employ up to 14,200 new staff in coming years

$65 billion worth of industrial projects are expected to employ up to 14,200 new staff in coming years But home owners are concerned house values will be kept below what they paid in last the boom

Mayor Peter Long said if nothing was done, small-business owners and non-resource workers could suffer the same exorbitant rents — some upwards of $2,000 a week — that occurred during the last boom cycle.

He said already rising rents, a 1.5 per cent availability of housing stock (down from 7 per cent over the past six years), and little appetite for banks to lend money to the 6714 postcode were reasons for council to influence the market.

"We don't particularly want to spend the money, but it's very important to us to get the market active," Cr Long said.

"We are concerned that prices will go up so much that ordinary mums and dads just won't be able to afford to live here any longer and will leave."

Land for sale in Karratha since 2014. ( ABC Pilbara: Jordan Wickerson )

Council's money in the bank currently collects only 1.3 per cent interest, so by helping kickstart the housing market it hopes to get a higher financial return in collaboration with developers.

While there are 8,500 residential properties within city limits of Karratha, Dampier, Roebourne, Wickham and Point Samson, the need for more is growing fast, with some builders thinking council's move is 12 months too late.

Meetings were held with builders this week in Perth and Karratha to present ideas and discuss potential expressions of interest.

This half-yearly housing and land snapshot shows a lack of listings in Karratha. ( Supplied )

One local builder said he'd had around 50 calls for quotes in recent months, but added that building in Karratha was exorbitantly expensive due to cyclone ratings, transport of materials and labour costs.

Kim Janney, a partner in the building company TIMIK, said it cost around $750,000 to build a new four-bedroom, two-bathroom (4x2) house in Karratha.

He said a recent call for expressions of interest by Landcorp for builders to develop house-and-land packages for $550,000 would only deliver a 2x1 house with a single carport, where the house cost was effectively $350,000.

"I'm not 100 per cent convinced that a lot of the numbers will stack up for both the City of Karratha and/or any developer that turns up."

Mr Janney said his margins for residential builds were extremely low, in the single digits, so TIMIK had to diversify to industrial builds.

He said the two-family company would need to build 30 houses per year to make ends meet if it was only doing residential work.

It is quite expensive to build in Karratha. ( ABC Pilbara: Jordan Wickerson )

Not everyone likes the idea

Home owners who bought when it was cheaper than renting are concerned house values will be kept below what they paid in the boom.

Renters, meanwhile, have experienced rapid rent increases in 2019.

"My landlord is not renewing my lease so he can raise it from $425 to $850," Ollie Lewis said.

"I'm looking at moving back home as I'm unable to afford to live in Karratha anymore."

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Venne Kurilowski, in a comment on ABC Pilbara's Facebook page, said the idea was hugely ironic and short-sighted.

"This will hurt the existing home owners who are funding this experiment," she said.

"I don't expect my rates to go into projects that aim to directly reduce the value of my house or its earning potential.

"If we need more houses and buildings, then I'd rather see the investment of just a fraction of that money into providing reasonably priced lifestyle blocks, with a few acres for residents to invest in and build their own houses for the long-term benefit to the liveability up here."

Multi-billion-dollar projects to fuel boom

While infrastructure such as land, electricity, water, roads, telecommunications and sewerage are all ready for the boom, issues remain with the shortfall in financial capital, build costs and the availability of building companies on the ground.

A total of $65 billion worth of industrial projects are expected to employ up to 14,200 new staff during the emerging construction phase of resource developments, with ongoing operational staff numbers tipped to be 2,915.

Solar panels power Karratha's airport. ( Supplied: City of Karratha )

Perdaman urea, Woodside Scarborough gas, Yara hydrogen, BCI mineral salts, BBI's new port development, Rio Tinto and FMG iron ore mines, as well as gold, precious metals and solar projects, are either already funded or expected to be funded in 2020.

The council wants rapid delivery of new housing stock for the sub-contracting small-business workforce that will support the industrial projects.

"It's for ordinary people who can't afford the ridiculous rents which we had during the last boom of around $2,000 per week and house prices up to $1 million or more," Cr Long said.

Another boom without affordable housing would destroy all the hard work done by council to "normalise" the town, he said.

Vacant blocks across the Karratha suburbs Nickol, Baynton, Bulgarra, Madigan, Jingarri, Tambrey, as well as the city centre, are all included in council's vision for new residential development.

Madigan Estate in Karratha has many empty blocks left over from the last boom. ( ABC Pilbara: Susan Standen )

A large block near the new Red Earth Arts Centre is slated for 100 apartments above a visitors' centre, museum, arts, cultural and retail space.

Proposals by builders and developers will be assessed by the council after the February 5 deadline, with building expected to begin in June.

In a statement, the Government said it was exploring ways to mitigate the effects from growing housing demand on the cost and availability of housing.

"As part of this, the Department [of Communities] is keen to work with the City of Karratha and industry to create a more stable market in the region.

"The department is also investigating opportunities that may be available from its land assets in Port Hedland and Karratha."