Dear Committee Secretary,
The purpose of this letter is to share research and analysis conducted by the Institute of Public Affairs (“the IPA”) with the Community Affairs References Committee (“the committee”) as it conducts its inquiry into the worsening rental crisis in Australia.
Australia’s housing shortage and rental crisis are the result of both supply and demand issues. On the supply side, government red tape and tax, as well as the rising cost of raw materials, are placing upward pressure on production and development costs. On the demand side, the unprecedented and unplanned surge in migration—of both permanent residents and international students—is placing strain on the housing market and putting further upward pressure on prices.
The findings contained in this submission are based on wide-ranging analysis, undertaken, and published by the IPA, pertaining to issues of relevance to the inquiry, including the relationship between rising migration and demand for housing, and Australians’ views on migration and the associated demand for infrastructure.