The construction and operation of Australian-owned nuclear submarines could deliver big housing opportunities for three Australian communities.
The futures of several Australian communities have been hanging in the balance as the AUKUS deal appeared uncertain. Image: Getty
Following a successful meeting between Australian Prime Minister Anthony Albanese and U.S. President Donald Trump, fears that Australia’s $368 billion AUKUS submarine pact would be cancelled have been largely laid to rest.
The U.S. president said that plans would progress “full steam ahead” during the 20 October meeting with Mr Albanese. Previously, the Trump administration had indicated the deal was under review. While the Pentagon is still said to be considering making changes to the pact, Mr Trump described those matters as “minor”.
For a number of Australian communities, the deal will bring an increase in workers to their local areas, supporting both a direct and indirect workforce. Bearing this in mind, the government has made some strides to contribute to housing in the areas set to experience a demand for homes when activity gets underway.
The communities set to see the most change out of the deal are Henderson and Rockingham in Western Australia, Osborne in South Australia, as well as a yet-to-be determined site on the east coast. Current proposals for the latter include Port Kembla, Newcastle and Brisbane.
AUKUS changes how government handles housing
With the AUKUS deal in its sights, the federal government recently proposed and passed a bill to change the purview of Defence Housing Australia (DHA), the government business enterprise that, up until recently, was charged with providing housing and related services for Australian Defence Force personnel and their families.
Under the changes, which passed parliament 28 August, DHA has been expanded to provide housing for foreign exchange and visiting military personnel, as well as the staff of philanthropic organisations that provide support services to defence workers.
DHA will now be able to build and acquire homes to accommodate foreign military personnel. Image: Getty
With AUKUS set to include a substantially increased presence of foreign military members on Australian soil, and the country in the midst of a housing shortage, the federal minister for defence personnel, Burt Keogh, said the government was conscious that the need to house this workforce “should not be at the detriment of local communities”.
Noting that this bill allowed DHA to purchase and construct new housing in suburbs nearby the military bases, rather than separated into military communities, he added that "in the spirit of a true partnership, the Albanese government seeks to ensure overseas personnel are integrated into local communities in order to provide them and their families the best possible experience in Australia”.
Here’s where those homes will be located, and what we know about plans for key AUKUS-adjacent suburbs.
Henderson and Rockingham, WA
HMAS Stirling Naval Base, located on WA's Garden Island off the coast of Henderson and Rockingham, is set to be a key site of the AUKUS deal.
From as early as 2027, HMAS Stirling will host a rotational presence of US and UK nuclear-powered submarines, with accompanying personnel, to help Australia build the necessary capabilities and skills to operate its own fleet of nuclear-powered submarines from the 2030s.
In addition, the Australian government has promised $8 billion to expand the base capability of HMAS Stirling, with 3000 workers needed to undertake the expansion and 500 workers required on-base long-term. The government has also committed $127 million to progress the planning, consultation, design and feasibility of a naval ship building and maintenance facilities for nuclear submarines in Henderson.
Rockingham is already set to accommodate more homes ahead of incoming AUKUS personnel to HMAS Stirling. Image: Getty
As the closest mainland suburbs to Garden Island, Henderson and Rockingham are set to be the big beneficiaries from an increased workforce.
A November 2024 report from CBRE estimated that including the indirect workforce created by the pact, the area would require the addition of 130,000sqm of logistics space, 30,000sqm of office space and 11,000 homes.
DHA has already been investing in the area, with developer Parcel Property, alongside local home builders Forma Homes and Plunkett Homes, entering into contracts to provide a total of 550 new homes in Rockingham that will be leased to the government body for defence personnel.
Osborne, South Australia
According to the Australian Submarine Agency, Osborne, on the Lefevre Peninsula in the west of Adelaide, is expected to be home to up to 4000 workers during the design and build phase of the submarine construction yard.
When it comes to building the nuclear-powered subs themselves, a further 4000-5500 direct jobs are expected to be created in Osborne when the program reaches its peak in twenty to thirty years' time
A November 2024 report from CBRE estimated that to accommodate the direct and indirect workforce set to be created by created in South Australia by the deal, the nearby region will require an additional 850,000sqm of logistics space, 40,000sqm of office space, 13,500 residential homes, 400 hotel rooms and 2500 childcare places.
Port Kembla, NSW
Shortlisted as a site of a possible location for a nuclear submarine base in 2022, Port Kembla is reportedly the strongly favoured option to establish an east coast location for submarine operations as required under the AUKUS deal.
Brisbane and Newcastle were also floated as potential sites.
While no decision is set to be made for several years, Port Kembla locals are not letting the issue rest.
The community has strongly pushed back against the proposal, with over 40 local organisations coming together in September 2025 to voice their oppose the establishment of the nuclear submarine base in area.
Concerns included how the military base’s exclusion zones would impact Port Kembla’s ability to function as a trading port, the area’s housing capacity, and the possibility of becoming a military target.
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