But bank executive maintains positive outlook on the country's long-term prospects
The housing dilemma is poised to take a toll on the economy, as growth prospects are dampened by a lack of sufficient housing stock, a senior banker has warned.
Ross McEwan (pictured above), chief executive of National Australia Bank (NAB), highlighted the potential economic ramifications of reduced immigration due to the ongoing housing crisis.
“One of the biggest issues for me around housing is we just don’t have enough of it here in Australia,” McEwan said in an article published by The Australian. “And that will slow down the growth of this economy because if you don’t have houses for migrants to come in to, we’ll soon be cutting off the migration levels coming into the countryside.
“So, we’ve got to get the housing going so we can actually get more migration, of the right types, to help grow this economy — and that’ll keep Australia growing.”
The Australian housing market is experiencing soaring house prices, while rental affordability has hit its lowest point on record, exacerbated by increased immigration that pressures the already strained housing inventory.
The surge in immigration, particularly after the easing of COVID-19 restrictions, has sparked political debate, given its contribution to the housing shortage. Recent figures from the Australian Bureau of Statistics indicate a 73% rise in net migrant arrivals, fuelling concerns over the housing supply gap.
McEwan, who is set to retire from NAB after a tenure exceeding four years, remains hopeful that resolving the housing crisis will maintain Australia’s economic growth momentum, despite the current challenges.
“I’ve never been a pessimist about an economy that’s got great mineral resources that we can export, that’s got a great tourism industry, we have a great education system that people want and will pay for,” he said.
“We’ve got so much going on for this country and people want to come to this country. I think this is a place to be very optimistic about. There’s a lot to like about Australia and about New Zealand.”
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