Australia to be hit by a record population explosion with 650,000 immigrants to arrive in just two years. With our present housing shortage, what will this do to our housing affordability, inflation, and our present housing crisis?
Jim Chalmers (Federal Treasure) this week announced the migration increases to 650,000 migrants. Sky News Political Editor Andrew Clennell says Australia’s net overseas migration, and a lack of housing to accommodate it, could be a potential inflationary aspect. “Here comes the housing crisis and another housing boom,” he said. “Treasury figures released by Treasurer Jim Chalmers, conveniently as the Greens continue to block Labor’s housing future fund, shows 650,000 extra people will be in the country within the next two years.”
The previous record high over two financial years was 577,000 migrants in 2008 and 2009 under Prime Minister Kevin Rudd. The sudden surge in the population is set to deliver a budget windfall to the government with a boost in consumer spending and taxes to help economic growth.
But it will add to the deepening homes crisis, with housing supply unable to meet the needs of renters, while soaring interest rates and the high cost of living have curbed property sales. The rapid rise in immigration will see Australia’s population pushing 27million by June next year and tipped to hit almost 30million in 2033 according to Treasury projections.
Jim Chalmers said the sudden growth will be a key factor in the Albanese Government’s second budget, set to be delivered in six weeks which will focus on cost-of-living relief. ‘Coupled with broad softening in hiring demand, increases in net overseas migration should help to ease skill and labour shortages, particularly for the hospitality and retail sectors.’ The high number of migrants, tourists and working holidaymakers is expected to boost spending, government tax take and the demand for services.
Reference: https://www.dailymail.co.uk/news/article-11912767/Australia-set-biggest-two-year-population-growth-migration-boom.html
