Thirteen interest rate rises since May 2022 are biting, so too inflation.

Rental properties are hard to find and the costs are at never-before-seen levels.

We all have to live within our means, individuals, families, businesses, governments, councils.

It's easy to form a doom and gloom mentality.

But this week we highlighted things aren't all bad news.

The Cally Hotel has lodged plans with Warrnambool City Council for a $4 million expansion to the historic pub in Fairy Street.

Under the plan, a new building to the south of the hotel would be created on what is now a car park. An alley between the old and new building would be transformed into a garden bar and the new building would feature a brand new bowling alley with an entertainment arcade next. The tenpin bowling alley would replace the city's much-loved but ageing lanes in Timor Street.

As The Cally's Lucas Reid said, "it is really exciting".

On the city's eastern fringe, Country Life accommodation village has lodged plans for a $5m expansion to cater for workers. Up to 29 two and three-bedroom units would be added to the site opposite Warrnambool's Deakin University campus, housing workers who would be taken by bus to Midfield Meat.

These developments are on top of the $384m redevelopment of Warrnambool Base Hospital which is due to get underway in earnest later this year.

These projects are good news not only for the construction industry but the city's economy. Workers need jobs and jobs put dollars into their hands, which is in turn invested in other sectors across the region.

While some regional centres are experiencing a sharp down turn in housing activity, the south-west, while not booming like it was three years ago, is holding its own.

We reported in January tourism was down and so too spending because of cost of living pressures.

But major developments like The Cally and Country Life expansions, the new apartments under construction on the former Criterion Hotel site in Kepler Street and hospital redevelopment help maintain a positive vibe and create confidence. They also help regenerate the look of the city, which is so important for future investment, attracting workers, retaining existing residents and the region's overall economic health.

Yes, times are tough, and we need to help those in need, but there are also significant positive signs of light at the end of the tunnel.