Australia’s migration intake has surged to unprecedented levels, with new arrivals exceeding pre-pandemic figures and contributing to severe housing and infrastructure strains. As the country grapples with a booming population, experts warn that this rapid influx could deepen the housing crisis, further escalating rents, property prices, and public service pressures.
In the first quarter of 2024, Australia saw 110,062 new migrants arrive, more than double the pre-pandemic average. With migration now accounting for three-quarters of population growth, the nation is facing an unprecedented challenge. While migration has long been integral to Australia’s demographic and economic landscape, the scale of this recent surge raises significant concerns about its long-term implications.
Migration Boom: A Strain on Housing
According to the Australian Bureau of Statistics (ABS), Australia’s population growth is now heavily reliant on migration, with nearly 1,223 people arriving each day in the March quarter. This influx is having a profound impact on the housing market, particularly rents. Vacancy rates across major cities have plummeted to near-record lows, intensifying competition for available homes.
Experts argue that the housing supply is struggling to keep pace with demand, exacerbating affordability issues. Property prices in cities such as Sydney, Brisbane, and Melbourne are climbing back toward record highs, while rents continue to rise. The supply-demand imbalance has left many Australians, particularly first-time buyers, facing an uphill battle in the property market.
This surge in migration is not just affecting the rental market; it is also spilling over into the buying sector. As demand for homes soars, prospective buyers are finding themselves priced out, with many having to compete for increasingly scarce properties. In fact, housing experts have pointed out that the growing influx of people is likely to delay the dream of homeownership for many Australians, further entrenching inequality.
Government Policy Under Scrutiny
The Albanese Government’s migration strategy is facing mounting criticism. Critics, including the Institute of Public Affairs (IPA), argue that the current level of migration is unsustainable and has placed undue pressure on Australia’s infrastructure. According to Daniel Wild, deputy executive director of the IPA, “The elevated level of migration is no longer a post-pandemic catch-up. It’s the new normal under the Albanese government. It is something that Australia simply cannot afford – with housing, infrastructure, and services unable to keep up.”
While the government has maintained that migration is essential for economic growth, the scale of the intake has raised concerns about the nation’s ability to provide adequate housing, public services, and infrastructure. The Housing Industry Association (HIA) has warned that Australia is falling behind in its housing construction targets, with a significant shortfall in the number of new homes being built.
