Why mass immigration wave is not the cause of Australia’s housing crisis, says business
Why mass immigration wave is not the cause of Australia’s housing crisis, says business
A catch in migration numbers since the reopening of borders after COVID-19 should not be used as a scapegoat for Australia’s failure to plan properly and build enough homes, a major business group has warned.
In a new report, the Business Council of Australia says it is disingenuous to label a temporary rebalancing of Australia’s migration flow as a “big Australia” policy.
BCA chief executive Jennifer Westacott said migration numbers returned to normal after borders closed in 2020 and 2021 amid the pandemic.
“Our population is expected to be smaller than previously predicted, regardless of the current migration catch-up period,” she said Thursday.
Australia has experienced a mismatch between housing supply and demand, which has driven up rents and supported a house price recovery.
Migration is central to Australia’s success and the system needs to be reformed, a lobby group says.
But while the council recognized a lack of housing supply as a ‘real problem’, it said migration was not the critical problem and reducing housing numbers was not the solution.
“The majority of Australians agree that migration is an advantage for Australia,” the report said.
‘The condition is that this must be well planned and managed, including ensuring that there is sufficient housing supply.’
The council highlighted underperforming planning systems and restrictive zoning as a handbrake on new supply.
The report also noted a decline in the number of people per home as space became desirable during COVID lockdowns, boosting demand for housing even as the population declined.
The BCA welcomed the federal government’s efforts to reform the migration system, noting that slow and complex systems held the country back as companies competed for the “best and brightest.”
The three-pronged temporary labor migration plan has the support of the group, although it warned that the higher income threshold for temporary skilled migration could weigh on the supply of workers for in-demand positions that fell below the cut-off mark.
“Because of the raising of the income threshold for temporary skilled migration, there is some urgency to create a new process for lower-wage migrant workers in industries with persistent shortages.”