- Population growth is putting pressure on the rental market
- Australia added a net 454,300 foreign migrants in the year to March
Australia is experiencing unprecedented levels of migration amid an ongoing housing crisis, with vacancy rates at historic lows.
The latest rental vacancy data from PropTrack shows that the nation’s vacancy rate fell to its lowest rate ever in September: 1.06 percent, with every state across the country experiencing severe shortages.
PropTrack said the tight rental market was due to high population growth.
“The continued rapid pace of population growth, coupled with a continued reduction in the supply of properties available to rent, has maintained pressure on rental costs, especially in major capitals,” the report said.
ABS data shows net overseas migration has risen sharply, with around 500,000 net migrants expected to arrive in Australia by the 2022-2023 financial year
Official quarterly population data published by the Australian Bureau of Statistics (ABS) shows Australia added a whopping 454,300 net overseas migrants in the year to March.
ABS data shows net overseas migration has increased even further, with around 500,000 net migrants expected to arrive in Australia by the 2022-2023 financial year.
These high levels of immigration will destroy the May federal budget forecast of 400,000 net overseas migrations for the 2022-2023 financial year.
The immigration boom comes as housing construction has declined.
Only 175,200 homes were built in Australia in the period to March 2023, against a total population increase of 563,200.
The latest high levels of immigration will destroy the May federal budget forecast of 400,000 net overseas migrations for the 2022-2023 financial year
According to an analysis in news.com.auThe housing supply will not be able to keep up with demand.
The analysis warns that ‘Australia is sleepwalking into an unprecedented housing crisis unless it can quickly increase housing supply to meet high levels of immigration’.
PropTrack senior economist Eleanor Creagh said this month that “to reach the 1.2 million goal, we need to increase our construction pace by almost 40 percent above current levels.”
In August, the national cabinet announced a plan to build 1.2 million new homes over five years, starting on July 1, 2024.
However, federal, state and territory governments will not build these 1.2 million homes, but instead their plan is to relax planning and zoning regulations to allow higher density, in the hope that private developers will build them .
There is widespread concern that new housing construction is insufficient to keep up with population growth
As more people compete for rental properties, there are concerns that Australia’s housing crisis will worsen, putting more and more people at risk of homelessness.
Popular share housing website Flatmates.com.au has seen a near doubling in the number of people looking for shared housing.
The Australian Bureau of Statistics (ABS) estimated there were 122,494 people homeless on Census night in 2021.
This represented an increase of 5.2 percent compared to 116,427 in 2016.