Cruel Labor deepens Australia’s housing crisis


On Tuesday night, I appeared on The Bolt Report where I explained how the Albanese government’s reckless ‘Big Australia’ immigration policy is worsening Australia’s housing crisis:

Below are some extracts from the interview:

“The major driver of, and the reason why we’ve got rising house prices in the face of massive interest rate hikes, is because the federal government is basically fire hosing the nation with extra people”.

“Just last financial year we added about 500,000 net overseas migrants to Australia, and data released today by the ABS – their monthly arrivals data – suggested that the September quarter, immigration is going to be even stronger”.

“So obviously, if you’re going to fire hose that many people, and they’re going to come into places like Sydney and Melbourne, that’s going to push up house prices and it’s also lifting up rents, which is adding to inflation. It’s causing problems there and that’s also feeding into house prices”.

“So, we’ve got this diabolical situation where it’s a case of demand and supply. Demand has been pushed through the roof by immigration and that’s basically making housing much less affordable”.

“It is off the charts this sort of population growth. And the problem with that is that it’s occurring at the same time as actual dwelling construction is collapsing”.

“Last financial year, Australia only added 170,000 homes. That’s against a population increase – so immigration plus natural increase – of about 630,000”.

“All the forward-looking indicators – whether you look at dwelling approvals, dwelling commencements, and construction finance – they’re all at around decade lows”.

“In the year to September, we only approved 164,000 homes. That’s the homes that will be built and that’s about 75,000 less than the Albanese government’s 1.2 million homes target, which requires 240,000 homes a year”.

“So, we’re not going to be anywhere near close. So, they’re basically ramping up immigration to levels we’ve never seen before”.

“Population growth at the same time as our actual dwelling construction is collapsing just means we’re going to have an even deeper housing crisis going forward”.

There is also discussion on the forces driving the ‘Big Australia’ policy against the public’s wishes.

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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.