Broken Canada a harbinger for Australia


The greatest accomplishment of the Albanese Labor Government has been delivering the worst rental and homelessness crisis in living memory.

The Albanese government has lifted net overseas migration to an estimated record high 500,000, driven by surging temporary migration (mostly foreign students).

Historical NOM

Labor has also lifted the permanent migrant and humanitarian intakes to record highs.


This population explosion has driven rental vacancy rates to record lows, driving rents into the stratosphere and forcing Australians into share housing or homelessness.

Rental vacancy rate

The situation will only get worse given that housing construction rates are falling at the same time as the nation’s population is exploding:

Dwelling completions

The situation is even worse in Canada, which has just experienced its largest population growth in history in number terms, driven almost entirely by the largest intake of migrants on record.

Canada’s population surged by 1,158,705 people (+2.9%) last financial year, driven by swelling temporary migration:

Canada temporary migration

Source: Ben Rabidoux

The Trudeau Canadian Government has also committed to welcoming 485,000 new permanent residents in 2024, 500,000 in 2025 and 500,000 in 2026.

Canada’s unemployment rate has soared amid surging labour supply growth and a sluggish economy:

Canadian Unemployment rate

Canadian Unemployment Rate

Canada’s GDP per capita has also collapsed to mid-2018 levels:

Canada GDP per capita

Even homicide rates are soaring across Canada:

Canada homicide rates

Like Australia, Canada is also experiencing severe housing shortages, soaring rents, and rising homelessness.

Canadian Prime Minister Justin Trudeau’s election manifesto was that “safe, adequate, and affordable housing is essential to building strong families, strong communities, and a strong economy”.


However, the Canadian Mortgage and Housing Corp. (CMHC) estimated that Canada needs to build 3.5 million more homes by 2030 than it would normally construct to restore affordability in the face of swelling population demand.

Not surprisingly, election polling shows a collapse in support for Trudeau’s Liberal Party in favour of the Conservatives:

Canada polling

The below video entitled “Housing hell: How we got here and how we get out”, explains the situation, with eerie parallels to Australia:

Just like Trudeau, Anthony Albanese is engineering the worst housing shortage in history by ramping population (immigration) demand to unprecedented highs.

The Trudeau and Albanese governments are supposed to be “centre-left”.


So, why do they hate the working classes so much that they deprive them of shelter and force them onto the streets?

Bring on the next elections.

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.