RBA: High immigration has destroyed housing affordability

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In October 2017, Labor’s open borders immigration extremist, Dr Andrew Leigh, penned a spurious article claiming that Australia’s mass immigration ‘Big Australia’ policy has not pushed-up house prices:

An OECD survey of the relevant studies concludes that migrants have a minimal impact on housing prices. Seven out of 10 new migrants to Australia either live with friends or rent – and the increase in rental prices has been much more modest than the rise in purchase prices.

As they settle down, some migrants buy, but they tend to purchase smaller dwellings (such as apartments or townhouses). Even migrants who have been in Australia for a decade have a lower home ownership rate than the Australian-born population.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.