As Queensland prepares to host the 2032 Olympic and Paralympic Games, regional councils and tourism bodies are increasingly concerned about the severe housing shortage, with vacancy rates below one per cent across much of the state.
With thousands expected to travel for the Games, attention is turning to unused hotels, abandoned properties and idle commercial buildings as potential temporary housing solutions.
According to the Australian Bureau of Statistics, more than 192,000 properties were vacant on Census night in 2021, representing 8.7 per cent of Queensland’s total dwellings. However, much of this unused stock remains locked behind legal, logistical or ownership challenges.
Brisbane's 2032 Games boss admits he's losing sleep over the city's lack of accommodation and hotels. https://t.co/VZ3A1cHvFd @annamcgraw_7 pic.twitter.com/ypaJELJ1c7
— 7NEWS Queensland (@7NewsBrisbane) October 3, 2025
In Rockhampton, the seven-storey Plaza Hotel, once a 66-room landmark, has been intermittently closed for almost a decade. Rockhampton Regional Councillor Grant Mathers expressed frustration at the sight of derelict accommodation in the face of widespread homelessness.
“Unfortunately, it does not send a good message at all,” Mathers said. “Everyone is dealing with homelessness, people sleeping in the parks and on the streets, and yet we have properties sitting idle.”
Data from the Real Estate Institute of Queensland’s 2025 Residential Vacancy Rate Report showed that 34 of the state’s 50 regions recorded rental vacancy rates at or below one per cent, with Rockhampton at 0.7 per cent.
REIQ Chief Executive Antonia Mercorella described the market as operating well below healthy levels. “Most parts of regional Queensland are sitting well below what we consider to be a healthy range, which is between 2.6 and 3.5 per cent,” she said. “We are seeing this across most parts of the country, not just Queensland. The conditions are extremely tight.”
While many locals have suggested repurposing unused hotels and motels for long term housing, Mercorella warned of regulatory and legislative hurdles. “The hotel may not be licensed for residential use, and there could be zoning and council restrictions. Permanent rental accommodation is governed by strict tenancy laws, which may be difficult to meet if you are converting hotels for residential purposes. It is not impossible, but there are significant challenges,” she added.
The Rockhampton Regional Council has already taken legal action against the owners of the closed Plaza Hotel, successfully enforcing a Public Health Order to clean up the neglected site. “I understand private ownership must be respected,” Mathers said. “But there are moments when councils must act. We cannot let buildings sit abandoned when there is a clear public need for housing.”
Tourism operators warn that the lack of short-term accommodation could undermine regional tourism and Olympic preparedness. Capricorn Enterprise Chief Executive Mary Carroll said the situation was becoming critical. “We are losing short-term accommodation in unit complexes to long-term bookings or large infrastructure projects,” Carroll explained. “Major works like the Rockhampton Ring Road and the Fitzroy to Gladstone pipeline are absorbing much of the available housing stock.”
The Capricorn Resort at Yeppoon, which closed in 2016, is a striking example; its 331 rooms are now deteriorating despite acute demand. Independent research by Tourism and Events Queensland found that 1,219 additional short-term rooms would be needed in the Rockhampton and Capricorn Coast region before 2032, a figure expected to rise.
Since then, Rockhampton has been confirmed as the host city for the Olympic rowing and canoe sprint events, further intensifying the pressure. “We are already seeing occupancies above 90 per cent across our region for most of the year,” Carroll said. “We are desperate for new short-term rooms before the Games.”
With Olympic events spread across multiple Queensland regions, Mercorella emphasised that the accommodation challenge extends well beyond the Games themselves. “We will need to think creatively and sustainably,” she said. “This is not just about housing visitors during the Games, it is about ensuring local communities remain adequately housed long after the event is over.”
As Brisbane 2032 draws nearer, the state faces a delicate balancing act, addressing an escalating housing and rental crisis while preparing to welcome the world. Without decisive action, regional leaders warn that Queensland risks hosting the Games amid one of its most acute accommodation shortages in decades.
