Australian Dream shrinks into micro apartments

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If you want a textbook example of how Australia has entered the Twilight Zone on housing, look no further than the below gaslighting from The ABC celebrating the fact that a professional occupational therapist has been forced to rent a micro apartment in Marrickville, Sydney:

Walking into her new studio apartment for the first time, Karen Fermin breaks into a wide grin.

“I can see it’s going to work,” she says giving her daughter a nod…

It doesn’t take long for Ms Fermin and her daughter to complete the tour. All up, their studio is about 25 square metres: space for a bed and perhaps a small table and chairs, a kitchenette, and a bathroom…

NSW Housing Minister Rose Jackson saw potential in the Nightingale model.

“We do want to see more of them,” Ms Jackson said…

Karen Fermin is an occupational therapist, a highly sought-after profession. She spent years at university gaining her degree.

The headline of the article should be about the absurdity of professionals like Ms Fermin needing to rent micro apartments with barely enough room to swing a cat.

Instead, The ABC has run a puff piece that could have been written by the development lobby, celebrating that Australians are being shoehorned into tiny homes.

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We all know why this is happening. Sydney is being force-fed by the federal government’s extreme immigration policy, squeezing residents into high rises.

Sydney welcomed 156,600 net overseas migrants in 2022-23, while 38,400 existing residents left the city:

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In the decade to June 2023, New South Wales’ population ballooned by 935,315 people, with net overseas migration accounting for 791,944, or 85% of this growth:

NSW decade population change

Most of this net overseas migration landed in Sydney, whose population has swelled by 1.35 million people since 2001, almost entirely due to net overseas migration.

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Instead of applying the brakes to migration, policymakers, the media, and most economists continue to gaslight the public into believing that Sydney’s housing woes are a supply issue rather than an excessive immigration issue.

Sydneysiders are told that they must get used to living in high-rise shoe boxes instead of houses to accommodate a population of nine million people by 2060.

High-rise living will become the norm, with projections from the Urban Taskforce showing that only 25% of homes in Sydney will be detached houses by 2056, down from 55% in 2016:

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Sydney dwelling composition

The Australian Dream is dead, replaced by micro apartments. And the developer lobby is laughing all the way to the bank at your expense.

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.