Australia is on the brink of a significant shift in homeownership and renting that is set to reshape the landscape. The Federal Government anticipates a substantial migration surge, with 1.5 million net overseas arrivals expected by 2027, nearly double the figures from 2017 to 2022. This surge follows a period marked by departures due to Covid-19 border closures.
This influx is good news for businesses grappling with staff shortages post-lockdown. A survey found that 60% of respondents reported being impacted by worker shortages, with 15% heavily affected. Moreover, 66% of respondents agreed that well-managed migration benefits Australia.
The construction, healthcare, and hospitality sectors are experiencing acute skill shortages, but new migrants are expected to fill these gaps. Many migrants choose to settle outside major cities due to living costs and government incentives, aligning with the Regional Australia Institute’s goal to attract migrants to regional areas.
A key challenge is housing supply, as new overseas migration pressures the property market. Adequate housing is crucial, and the government is focusing on aligning investments in infrastructure, services, and housing to address the issue.
Rental supply has also tightened since late 2021, leading to increased demand and rising rents. Dwelling approvals have decreased, with a projected recovery after 2025.
The influx of migrants and foreign investors has some concerns about the housing market’s stability. However, they play a vital role in filling workforce gaps, contributing to educational institutions, and enriching the cultural diversity of the country. Australia is undergoing a significant transformation, with new arrivals contributing to the nation’s growth and vitality.
Analysis source: Center for Population
