Albo’s housing shortage shocker

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The absurdity of Australia’s housing situation is neatly encapsulated by the federal budget’s population forecasts, which are outlined in the below table:

Australian population forecast

As you can see, Australia’s population is projected to increase by 2.18 million people in the five years to 2026-27, or by an average of 435,200 people each year.

That’s the equivalent to adding five Canberra’s worth of people to Australia in only five years, but without the housing and infrastructure to match.

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Or put another way, it is the equivalent to adding a Perth’s worth of people over just five years.

Catering for such a huge increase in population is an insurmountable task that will inevitably fail, resulting in a deepening housing crisis, soaring rents, increased homelessness, and worsening infrastructure bottlenecks.

As expected, NSW (+578,000), Victoria (+694,000) and QLD (+455,000) are projected to grow the most.

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NSW and VIC will receive the lion’s share of the Albanese Government’s extreme immigration program:

NOM

Whereas QLD will receive most of its population increase via internal migration, as Melburnians and Sydneysiders seek to escape their own crush-loading.

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Not surprisingly, the Albanese Government has given zero thought to the consequences of its record immigration expansion on liveability and infrastructure provision in these cities, nor where these migrants will live.

It is a ‘grow and hope’ strategy that fattens the federal budget via extra income tax receipts, while the broader costs are borne by state governments and incumbent residents at large.

Australians overwhelmingly oppose high immigration and certainly did not vote for this policy:

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Desired level of immigration

Yet the Albanese Government is ramming extreme immigration down our throats under the cover of its hand-picked Jobs & Skills Summit and fake Migration review.

We deserve better.

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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.