Report: Australia’s Housing Affordability Crisis is Amplified by Bad Immigration Policy
By Paul Westchurch @ Real Estate Daily
January 11, 2018

Australia is going through a major housing affordability crisis, and younger generations are quickly losing hope of purchasing a home anytime soon. Bad immigration policy is amplifying the problem, according to a new study from Industry Super Australia.

Key Takeaways

  • Bad immigration policy is amplifying Australia’s housing affordability crisis
  • Poor planning caused immigrants to settle in a limited number of localities
  • As a result, housing supply in those areas is experiencing significant stress


The majority of immigrants to Australia are settling in a limited number of localities, and it’s only pushing prices higher. According to Industry Super Australia chief economist Stephen Anthony, the government’s poor planning and policy are to blame.

“We forgot you need to put plans down when you grow cities. For that reason, we will be playing catch-up on planning – if we ever catch up,” Anthony said. “Government lacks coordination – policy is occurring inside silos, people who manage foreign investment don’t talk to anyone else.”

Latest figures from the Australian Bureau of Statistic show that Victoria and New South Wales welcomed the most immigrants between 2015 and 2016. The two states added 65,007 and 71,161 immigrants, respectively.

“There is no question that immigration isn’t feeding demand for housing,” said Saul Eslake, an independent economist at the University of Tasmania. “Federal governments control international immigration. There’s a coordination problem; the capacity to meet housing demand is a state problem.”