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The View | Why Australia shouldn’t pin its housing crisis on immigration
- Australia’s migration-fuelled population growth has been a driving force behind increasing demand in the property sector
- However, while immigration is being blamed for the homes crunch, the problem is linked more to limited supply, planning laws and the tax system
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In 2018, Australia’s population broke through the 25 million mark, some three decades sooner than the government had predicted in 1998. At the time, the country’s population was already growing at the fastest pace among leading developed nations.
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A high immigration rate – one person was arriving to live in Australia every minute – was a boon to the economy, prolonging a record-breaking recession-free run that stretched back to 1991. It also cemented Australia’s position as one of the world’s most successful multicultural societies.
Fast forward six years and the influx of immigrants has increased dramatically. According to data from the Australian Bureau of Statistics, the population grew 2.5 per cent, or 660,000, in the year to September 30, 2023. Net overseas migration accounted for 83 per cent of the growth as a sharp rebound in arrivals – predominantly those on temporary visas for work or study – exceeded government estimates.
Although net migration is expected to decrease next year, Australia’s population is still forecast to grow at an annual rate of 1.4 per cent in 2025 and 2026. Indeed, by 2034, the population is expected to increase to 30.9 million, government data shows.
Population growth has long been a defining theme of Australia’s economy, creating additional demand for goods and services and providing a lever the government can pull to address skills shortages. It also sets Australia apart from other economies with severe demographic challenges, particularly Japan.
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A megatrend that appeals to global investors, Australia’s brisk population growth is a crucial driver of the country’s real estate industry. “It’s unquestionably part of Australia’s economic success,” said Mike Zorbas, chief executive of the Property Council of Australia.
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