As Australia grapples with a growing housing shortage, immigration has become a hot topic in political debates.
In the lead-up to the election, conservative leaders such as Clive Palmer and Peter Dutton are arguing that the influx of new arrivals is putting added pressure on the housing market, making it harder for Australians to buy homes.
But is this the real cause of the crisis?
On Thursday morning’s episode of The Briefing, we sat down with Finance Journalist Alan Kohler to unpack the issue.
Kohler said while the large number of migrants does increase demand, the real issue is the lack of infrastructure.
“Immigration is fine, good for a country, nothing wrong with immigration at all. It boosts demand, increases GDP, [and] makes the economy look great. The trouble is, you know, you’ve got to build more houses,” he said.
The Coalition has pushed for reducing immigration, claiming it would ease pressure on the housing market.
They also suggest building more homes, cutting red tape, and allowing Australians to use their super for home deposits as part of the solution.
Kohler pointed out that over the past 40 years, the number of new homes built has kept pace with population growth, despite fluctuating migration levels.
However, he argued that the government failed to keep up with the growing demand for housing, particularly in recent years when migration levels surged after Covid-19.
“I know it sounds probably hard to believe but it is true that the government really is not in control of it. It’s driven mainly by universities, about 40 to 45 per cent of Australia’s immigrants come via student visas.”
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