CBA economist Harry Ottley has published a chart pack that illustrates the dire consequences of record net overseas migration on Australia’s rental market.
Residential building approvals have collapsed across the major jurisdictions:
House commencements have also collapsed:
Apartment commencements have likewise collapsed:
The next chart summarises the situation at the national level, with approvals, commencements, and completions all collapsing:
Meanwhile, net overseas migration is running at record levels across the major jurisdictions and nationally:
This record net overseas migration has driven population growth through the roof:
The combination of record population growth and falling housing construction has pushed residential rental vacancy rates to rock-bottom levels:
Accordingly, rental growth has soared across the major capitals:
The next chart plots asking rents across the major capitals:
Finally, the surge in immigration has driven the rebound in house prices, despite the Reserve Bank of Australia’s aggressive monetary tightening:
Bottom line: Australia’s historically high net overseas migration has driving a gaping gap between housing demand and supply, which is driving up both prices and rents.
Even immigration influencer, Abul Rizvi, agrees that the situation has gotten out of hand:
The data is irrefutable.
