The Highlands will need almost 32,000 additional homes over the next 20 years as growing housing shortages threaten the ability of communities to retain families, attract workers and benefit from major economic investment.

New figures presented to Highland Council’s Housing and Property Committee on Wednesday 4 November 2026 estimate that 31,848 homes will be required across the region over the next two decades.

The findings form part of the latest Housing Need and Demand Assessment, which sits alongside the council’s Local Housing Strategy and its Strategic Housing Investment Plan covering 2027 to 2032.

Together, the documents highlight the scale of the challenge facing a region where the availability of suitable and affordable homes is increasingly important to both communities and employers.

A survey found that 65% of employers identified housing shortages as a barrier to recruiting and retaining staff, underlining the connection between the housing crisis and the Highland economy.

Almost three in ten households said they expected or would like to move within the next two years, while 20% of households with a health condition reported that their homes did not meet their accessibility needs.

A further 10% of households considered their accommodation overcrowded.

Despite the pressures, Highland Council and its housing association partners have delivered more than 1,800 affordable homes over the past four years, with 72% of those properties located outside Inverness.

That included 837 new council homes, 897 properties delivered by housing associations and 76 homes offered through low cost home ownership.

Another 419 homes were delivered for mid market rent, while 135 properties were purchased on the open market to help meet housing needs.

Housing and Property Committee Chair, Councillor Glynis Campbell-Sinclair, said:

“Housing remains one of the biggest challenges facing Highland and is fundamental to sustaining communities, supporting economic growth and ensuring people can continue to live and work in the places they call home.

“Over the past four years, more than 1,800 affordable homes have been delivered across Highland through the Council, and our housing association partners of which Highland Housing Association (HHA) is one of our most successful partners in delivering homes.

“While this represents significant progress, the latest evidence shows that demand continues to outstrip supply.

“The Housing Need and Demand Assessment estimates that around 31,848 homes will be required across Highland over the next 20 years.

“Meeting that need will require continued investment, strong partnerships and a collective focus on increasing housing supply across all tenures.

“Housing is about far more than building homes.

“It plays a vital role in tackling poverty, improving health and wellbeing, enabling independent living and supporting the workforce needed for Highland’s future economic growth.

“Through our Strategic Housing Investment Plan, Local Housing Strategy and Highland Housing Challenge, we are working with partners to deliver more homes, bring empty properties back into use, attract investment and create thriving, sustainable communities across Highland.”

The council’s investment plan aims to deliver at least 700 affordable homes each year between 2027 and 2032, although achieving that target will depend on securing sufficient funding.

Housing provision is also central to proposals for a new Highland Growth Deal, which could attract between £10 billion and £16 billion of public and private investment over 25 years.

Major developments involving the Inverness and Cromarty Firth Green Freeport, renewable energy, electricity infrastructure and transport are expected to create opportunities, but employers will need homes for the workforce supporting that growth.

Alongside new developments, the council intends to bring more empty properties back into use and improve the energy efficiency and accessibility of existing housing.

A further review of the Local Housing Strategy and Strategic Housing Investment Plan is scheduled for 2027.

For communities across the Highlands, the challenge is ensuring that the promise of future investment is matched by the homes people need to remain in the places where they live and work.