Prime minister thinks he knows the real cause
Australian prime minister Anthony Albanese (pictured above) has dismissed claims that record immigration levels are driving the country’s housing shortage and worsening affordability.
Speaking on ABC’s Q+A program, Albanese said a surge in immigration was inevitable following the reopening of Australia’s borders after COVID-19 restrictions.
“When the borders were lifted, there was always going to be a spike,” he said. “Australians coming home, visitors coming here for the first time, students.”
The prime minister argued that limited housing supply, rather than increased demand from migrants, is the main factor behind rising prices.
“We want them to be more affordable,” he said. “The key there of course, as well, is supply.”
Albanese criticised the opposition Coalition for blocking Labor’s proposal to limit annual international student numbers to 270,000. He suggested that student numbers were an area where immigration-related demand could be reduced.
“On immigration, particularly when it comes to housing, the biggest thing that you could do, area where you could reduce the amount is in students because some of that frankly was being abused,” the prime minister was quoted as saying in a Daily Mail report.
Australia’s net immigration reached more than 500,000 in late 2023, almost two years after the border reopened. For 2024, the intake is estimated at 444,480 — still more than double the pre-pandemic level of 194,400 recorded in the year to June 2020.
Albanese acknowledged that while homeowners benefit from rising property values, the trend makes it harder for first-home buyers to enter the market.
“For the good of people who own homes, it’s good, but for people who are trying to get into home ownership, it makes it more difficult,” he said.
Housing affordability continues to be a major challenge, with median house prices in capital cities reaching $1 million. This leaves many Australians earning the average full-time salary of $102,742 priced out of the market. Younger buyers are especially affected, with house prices climbing at double-digit rates in areas such as western Sydney, Brisbane, Perth, and Adelaide.
The Albanese government, in partnership with state governments, has pledged to build 1.2 million homes over the next five years. However, only 177,702 new homes were completed in the year to September — well below the 240,000 annual average needed to meet this target.
Meanwhile, construction firms are grappling with high material costs, increasing the risk of insolvency and further delaying new housing supply.
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