Labor drowns in housing lies

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Labor are the party of gaslighters.

Check out the video below of Home Affairs Minister, Clare O’Neil, shedding crocodile tears over the nation’s housing crisis, whereby she blames the former Coalition Government:

“This is an urgent housing crisis that we’re in as a country. And the federal government is tackling this from every possible angle”.

“In the budget we implemented the biggest increase to rent assistance in 30 years. We’ve got that $2 billion that’s gone to the states for social housing”.

“What can’t get dropped off the agenda is the Housing Australia Future Fund. So this $10 billion fund the federal government wants to use to build more houses, which at the end of the day what we need to do”.

“So, we’re trying to do everything we can. We care about Australians and they’re struggling really deeply with this problem”.

“This housing crisis didn’t start yesterday. We are trying to clean up a decade of absolute inaction on this problem. It’s housing supply”.

“What you’ve got now in Canberra is a government trying to do something about this problem”.

“Our government wants to build more housing”.

If Labor was “doing everything it can” to fix the housing crisis, it wouldn’t have deliberately ramped Australia’s immigration intake to record levels by:

  • Extending post-study graduate visas by two years, making student visas more attractive and fuelling record numbers of arrivals.
  • Committing $42 million and 600 staff to clear the contrived “one million visa backlog” and approving as many visa applications as possible.
  • Issuing 66,000 “pandemic event visas” rather than closing the rort down.
  • Prioritising offshore visa applications over onshore.
  • Signing open borders migration agreements with India.

Labor’s May federal budget projected that Australia would receive an unprecedented 1.5 million net overseas migrants over the five years to 2026-27, which is equivalent to the population of Adelaide:

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Net overseas migration

This volume of migrants would require Australia to supply 329 additional homes per day net of demolitions just to house the additional migrants arriving (let alone Australians).

Labor’s big solution is to punt $10 billion on the stock market to hopefully build 30,000 homes over five years via its woefully inadequate Housing Australia Future Fund (HAFF).

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It has also signed an agreement with the states to magically get the private sector to build 1.2 million homes over five years, which has zero chance of actually being achieved.

The Albanese Government could solve Australia’s housing shortage with the stroke of a pen by simply reducing net overseas migration to historical levels of around 100,000 a year (see chart above).

This level of immigration worked well for Australia and ensured that the supply of housing and infrastructure always kept pace with demand.

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It was also supported by the public, unlike current extreme levels of immigration.

The fact of the matter is that Australia doesn’t have a problem building homes: we built record numbers last decade:

Dwelling completions versus population change
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The issue is that population growth via immigration has been ramped-up well beyond the nation’s capacity to supply housing and infrastructure.

The Albanese Government needs to stop gaslighting the public into thinking that Australia’s housing crisis is a supply issue necessitating the bulldozing of suburbs into high-rise apartment blocks.

Under successive Coalition governments, rental growth was completely stalled:

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The genesis of the problem is extreme immigration-driven demand delivered by the Albanese government.

So, cut immigration.

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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.