Labor’s visa reforms worsen housing crisis

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Back in October, Labor’s Assistant Minister for Treasury, Andrew Leigh, Tweeted that “migrants aren’t just homebuyers, they’re disproportionately likely to be home builders”:

Andrew Leigh Tweet

I noted at the time that Leigh’s claim was demonstrably false given the overwhelming majority of Australia’s net overseas migrants come through the student channel, with a disproportionately low share of visas handed out to builders and tradies:

Net overseas migration
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Leigh’s lie has been categorically debunked by Labor’s migration reforms, which has explicitly excluded tradies from its fast track pathway:

“Clare O’Neil says the government’s move to exclude highly paid trades from the specialist skills pathway will not hinder national cabinet’s goal to build 1.2 million homes”.

“It’s really important to understand that our strategy changes do not make it harder to bring tradespeople into Australia”, she said on Monday.

“The government feels strongly that for sectors like trades, you should have to prove that there is a skills shortage before you start to recruit overseas”.

Independent economist, Tarric Brooker, encapsulated the farce in the next Tweet:

Tarric Brooker Tweet
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Why hasn’t Labor required all professions to “prove that there is a skills shortage before you start to recruit overseas”? Why only require this for tradies?

Housing supply and demand

Meanwhile, Australia’s rental crisis continues to worsen by the day as Labor floods the nation with people needing housing, at the same time as actual construction is collapsing.

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Rental vacancy rate

Source: CoreLogic

The Albanese government is an unmitigated disaster for Australians seeking a place to live. No wonder popular support for Labor is collapsing.

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.