Australia’s housing crisis is a warning for the world


Bloomberg has released a video report on YouTube claiming that “Australia’s housing crisis is a warning for the world” (video below):

“Alarms are going off in Sydney, known as Australia’s bellwether property market. The coastal city ranks as the second least affordable housing market in the world among 94 major cities”.

“This rush is very overwhelming. It’s not enough supply and there’s too much demand”.

“It’s the highest growing population out of all the Australian cities. And that’s always going to cause prices to go up when land and homes are scarce”.

“We’ve got very tight conditions with respect to the supply of stock on market. We’re continuing to see that housing demand has been bolstered by a very strong rebound in net migration”.

“The population of Greater Sydney is expected to grow by 1 million by 2041 to 6.1 million people. To cope with that influx the state needs about 900,000 additional dwellings by then according to government estimates”.

“Rental markets in Australia are incredibly challenged at the moment, so we’ve got vacancy rates which are at or close to record lows in most capital cities australia-wide”.

“We’ve got very strong demand to rent and that continues to outstrip the supply of available rentals. Less than one percent of the country’s rental properties are available for occupancy, which is the lowest among comparable markets globally and the tight supply partly explains why rents for houses and apartments surged by 16% and 20% respectively in the past year alone.

Is there any wonder why we have a housing shortage when the Albanese Government has ramped immigration to unprecedented highs:

Net overseas migration

And this massive increase in in immigration demand is way above the nation’s ability to supply homes:

Dwelling completions to population change

Worse, the overwhelming majority of these migrants have gone to Sydney and Melbourne, followed by Brisbane and Perth:

Net overseas migration by state

The Albanese Government has engineered the current rental crisis by ramping net overseas migration to unprecedented levels.

Labor never told Australians that it planned to do this. It never took the policy to an election. It just foisted a Big Australia upon us by stealth.

Now renting Australians are paying the consequences by being thrusted into sever financial strain, being forced to live in group housing, or being thrown onto the streets.


The Albanese Government is an inequality disaster.

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.