Kohler: “Horrific” Labor to blow-up Australia’s housing market

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Alan Kohler has warned that the Albanese Government’s mass immigration push could lead to a “horrific” rental shortage next year:

The Immigration Minister Andrew Giles has just revealed that he’s processed more than two million visas since the election…

And at the jobs and skills summit, Giles announced an increase in the permanent migration intake from 160,000 to 195,000, or 16,000 a month…

He urgently needs to start talking to the Minister for Housing, Julie Collins, or else most of those people will be living in tents.

If the Labor government doesn’t start co-ordinating immigration and housing, the mixture will be explosive, because Australia’s housing crisis is going to be horrific next year…

The Labor government has… flung open Australia’s doors. But where are they all going to live?

The national rental vacancy rate is 1.1 per cent, which means in the whole of Australia there are currently 51,437 rental vacancies according to SQM Research, but most new arrivals want to live in a city so the capital cities total is more relevant – 37,626.

That’s about half of one month’s new arrivals…

[Labor] has approved two million visas when there are 51,437 homes currently available to rent…

The Labor housing policy is hopelessly inadequate and when combined with its immigration policy, it’s downright dangerous.

I have expressed the same concerns for months, so it is great to see somebody in the mainstream media also raise the alarm.

Adding literally hundreds of thousands of migrants to housing demand when the nation’s rental vacancy rate is already at record lows and rents are soaring at double-digit rates is a recipe for disaster.

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Where will they live? In tents? On the streets?

The inevitable outcome will be a worsening of the rental crisis and increasing homelessness.

Anthony Albanese likes to wax lyrical about how he was raised in social housing. Yet by opening the immigration floodgates, his government is about to throw the nation’s rental market into further disarray, worsening the social housing shortfall.

The Albanese Government is an inequality disaster in the making.

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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.
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