Australian Immigration Daily News

The Settlement Council of Australia's report on housing affordability challenges the notion that migrants are to blame for rising housing costs. While migration contributes to population growth and housing demand, the root causes of Australia's housing crisis are far more complex.

Key factors include housing supply constraints, with new housing construction failing to meet demand, slow approval processes, and zoning restrictions limiting land availability in high-demand areas. Additionally, interest rates, tax policies (such as negative gearing and capital gains tax discounts), and changing demographics including shrinking household sizes and increased investor activity have played a significant role in driving up prices.

While migration does impact housing demand, research shows that cutting migration would come at a significant economic cost, reducing government revenue and weakening the workforce. Skilled migrants contribute more in taxes than they receive in services, with each permanent skilled migrant estimated to generate a $249,000 fiscal benefit over their lifetime. Reducing migration by 135,000 over four years could lead to a $34 billion loss in tax revenue. Moreover, newly arrived migrants often struggle the most with housing affordability, as they lack the intergenerational wealth of long-term residents.

The report concludes that a holistic policy approach focusing on housing supply, planning reforms, and financial policies—is needed to address affordability, rather than blaming migrants. Migration is critical to Australia's economic strength and social well-being, and policy responses should ensure that the housing market accommodates both new arrivals and existing residents fairly.

Source: Housing-affordability-in-Australia.pdf