Recently we are listening to the effects of increasing migration in the real estate market. The Federal Government predicts 1.5 million foreign arrivals by 2024.
This amounts to nearly twice the number of migrants reaching our shores between 2017 and 2022.
Newly arrived families are choosing to purchase a property right now, due to the extremely competitive rental market and low national availability rates.
However due to a combination of rising living expenses and incentives offered by the Department of Home Affairs., more migrants are choosing to live outside of the capital cities of the eastern states
According to the Property Council of Australia, The Federal Budget for 2023–2024 demonstrated both the severity of the housing supply shortage and the increase of migration. It issued a sincere warning, stating that the Australian government needed to balance its targeted immigration policy with an equal housing investment and improved national planning procedures.
Minister for Home Affairs the Hon Clare O’Neil outlined a new migration strategy that will align investments in infrastructure, service provision and housing, including ensuring joint action across all levels of government to address barriers to increasing housing supply.
Migrants arrive with skills and contribute to human capital development of receiving countries. Migrants also contribute to technological progress. Understanding these impacts is important if our societies are to usefully debate the role of migration.
We need to do two things. The first is accelerating the baby steps already under way to get more housing built. To date we’ve started putting some carrots in place, but sticks are going to have to be used too if councils are to approve what’s needed, and if the construction sector is to be able to build at the speed we require.
Second, however, we’ll also need to wind back migration – including student numbers – for a time.