“Every Australian should have the opportunity to own their own home, yet the surge in demand from unplanned migration growth will make housing even less affordable for both Australians and new migrants alike,” said Daniel Wild, Deputy Executive Director of the Institute of Public Affairs.
New research released today from the IPA estimates the Federal Government’s unplanned rise in net overseas migration, to over 1.75 million by 2028, will create a housing shortage of 252,800 dwellings in the same period.
Every state and territory will be affected by shortages, by 2028:
- New South Wales: 70,889 house shortage
- Victoria: 62,168 house shortage
- Queensland: 54,591 house shortage
- Western Australia: 34,720 house shortage
- South Australia: 18,162 house shortage
- Tasmania: 8,922 house shortage
- Northern Territory: 2,624 house shortage
- Australian Capital Territory: 2,325 house shortage
“Australia has proven itself to be one of the world’s most welcoming and tolerant communities. Sustainable immigration has been the bedrock of our success, but what the Federal Government is now proposing is not only unsustainable, it will exacerbate the very problems facing mainstream Australians,” said Mr Wild.
The aggregated cost of the housing shortage between 2023 to 2028 is approximately $142 billion or $24 billion per annum on average, based on the cost of the extra housing that would need to be constructed in order to accommodate the expected increase in migration.
“The Federal Government’s unplanned migration surge will further add to inflation by increasing demand without any productivity gains, which means Australian families will keep paying more and more at the check-out,” said Mr Wild.
“Moreover, an unsustainable jump in migration will put further pressure on critical economic and social infrastructure, such as schools, roads, and hospitals that are already buckling under pressure.”
Polling released by the IPA in May, shows that 60% of Australians want a temporary pause on the intake of new immigrants until more economic and social infrastructure, such as schools, roads, hospitals and houses are built.
“We are told this unplanned surge in migration will cure our worker shortage crisis, yet our leaders have the tools to begin to tackle Australia’s unprecedented worker shortage via simple and effective reforms, such as cutting red-tape to allow our pensioners, veterans, and students to work, said Mr Wild.
To download the IPA’s housing shortage research click here.
To download the IPA’s polling results click here.