The peak in the number of immigrant entries is, according to some people I hear, the only factor responsible for the housing crisis in the country, but the true reasons, according to experts and newspapers, are deeper.
The percentage of available homes in Australia is at historic lows, both in large centers and in regional areas: in Sydney and Melbourne available homes are currently half as much as they were a few years back.
According to statistics, buying the house where people live would be more economically advantageous than continuing to pay rent since rental prices are skyrocketing.
There has been an exponential increase in rents in the last 12 months especially.
Newspapers keep on publishing articles with headlines such as: ‘Record immigration, nowhere to live. Welcome to Australia's rental crisis’ and ‘Record immigration breaks housing market.’
These headlines all point in the same direction, suggesting a cause and effect relationship between the rental crisis and immigration.
It is true that now the borders are open and many immigrants are therefore coming and the numbers of entries are returning close to pre-pandemic levels but we cannot call it an invasion.
I believe that a growing demand, combined with a national availability of properties at 1% - the lowest level in the country's history - has therefore generated the surge in rents in recent months, in Sydney as in the rest of the country.
According to a survey by The Guardian Australia that I have read, more than half of Australians interviewed would be in favor of imposing a cap on the flow of immigrants to combat the housing crisis in the country until there is enough affordable housing for all.
But truth is the increase in immigrants in recent years is only part of the problem.
Almost all newcomers and new immigrants rent houses that is true, but this is a rather recent phenomenon as well; let's remember that during the pandemic, with borders closed, rental prices still increased by a lot.
For some people, the problem is that no new homes are being built.
Many point the finger at population planning policies, the shortage of affordable homes, but also a tax regime that should be revised, including the so-called negative gearing that is tax exemptions on capital gains and interest deductibles.
It seems that the parliament approved a plan in September to provide funds and investments to be allocated to build public housing and thousands of new homes, but the actual start date of the works is not yet known.
Property analysts continue to forecast a steady rise in Australian housing prices in 2024, with the Central Bank leaving open the possibility of an increase in interest rates before the end of the year.
The average price of a home is too expensive for many first-time buyers and what contributes to the problem is low unemployment, high wage growth and increased immigration which will likely continue to push these prices up.
I have read that, since the 2008 financial crisis, home prices have nearly doubled.
Basically, house rental prices will continue to rise because people will have greater ability to borrow later in the year, thanks to tax and rate cuts.
The good news is that, thanks to a recent law, high-income people will have to pay more taxes, while low-income families struggling with rising costs of living will pay less.
Record-low interest rates during the pandemic and a shortage of housing supply have fueled already expensive home prices and forced would-be first-home buyers into the rental market.
