By Leith van Onselen
Given the bipartisan policy approach to immigration, which contributes the lion’s share of the 350,000 to 400,000 increase in Australia’s population each year, prices are best contained via a sufficient increase in supply. By 2022 Australia’s population will be about 2 million more than it is today. Whether these new Australians rent or buy a dwelling is secondary to the fact that the number of dwellings in Australia needs to increase by about 800,000 just to meet that demographic demand. The current level of building approvals is just enough to meet that level of growth having been stronger than that during 2016 (noting that there are around 40,000 dwellings demolished and replaced with new ones each year).
Given the bipartisan policy approach to immigration, which contributes the lion’s share of the 350,000 to 400,000 increase in Australia’s population each year, prices are best contained via a sufficient increase in supply.
By 2022 Australia’s population will be about 2 million more than it is today. Whether these new Australians rent or buy a dwelling is secondary to the fact that the number of dwellings in Australia needs to increase by about 800,000 just to meet that demographic demand. The current level of building approvals is just enough to meet that level of growth having been stronger than that during 2016 (noting that there are around 40,000 dwellings demolished and replaced with new ones each year).
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