With a housing crisis in full swing, cabins are coming … and tourist spots are going!

Published: August 20, 2025

The surge in the popularity of caravanning and camping since the pandemic, coupled with a mounting housing crisis, has potentially created a perfect storm for campsite demand.

Grey nomads and other leisure travellers will have noticed that people who have nowhere else to stay are now a significant presence in free and budget camps in some areas of the country.

Similarly, with housing stock in short supply, it is almost inevitable that some bodies are looking at caravan parks to perhaps take up some of the slack.

In Beaufort, west of Ballarat in regional Victoria for example, a local caravan park has just doubled its cabin numbers to 14 in a move the State Government hopes will provide fixed-term stays for local workers unable to find lodgings elsewhere.

It says businesses in the area have been suffering staff shortages due to a dearth of accommodation options. And the Government is confident the new cabins at Beaufort Lake Caravan Park will help with that issue, while also expanding Beaufort’s visitor demographics and driving business tourism in the area. As well as the cabins, there are currently 47 camping sites at the park.

It’s a similar story at the Kalaru Holiday Park near Tathra on the NSW South Coast, which has just lodged a development application to significantly increase the number of long-term sites it has.

Currently, the park has 48 long-term sites, 94 short-term sites and 40 campsites. The new proposal, currently being considered by Bega Valley Shire Council, would see the number of long-term sites increased to 98.

A spokesperson for the council told the Grey Nomads that, if the application is approved, the total number of sites within the park will remain the same.

“This will result in a reduction in the short-term sites,” the spokesperson said. “However, there will still be short-term site provision.”

A letter from the park in support of the development application said its proposal provided for the highest and best use of sites within the park and for the region, and would help resolve local rental stock issues.

“It will allow further cabin stock within the park which will be contributed towards affordable housing options for potential residents moving to the area and workers seeking accommodation for a predetermined period in the region,” it said.

The trend towards greater numbers of cabins in caravan parks is one which has long been observed by grey nomads … and it seems it’s one that’s set to continue for some time yet.

And its impact is only likely to be felt more acutely at a time when so many ‘tourist sites’ at caravan parks in popular areas are already booked out well in advance.

  • With an ongoing housing crisis, do you think it is inevitable that an ever-higher percentage of van parks will be used to house more longer-term guests? Comment below.

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