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Recent Surge in Migration is Intensifying Pressure on Australia's Rental Market

  • Writer: Conor Keenan
    Conor Keenan
  • Apr 15
  • 2 min read

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Conor's Corner

We should take a page out of Canada’s book, address the demand side of the rental market until supply can catch up. This isn’t about race; it’s about reality. If we’re serious about easing the pressure on millions of everyday Australians who are struggling to pay rent, we need to act now. Ignoring the demand surge while supply lags behind is only making things worse. It’s time for a wake-up call.



Migration Rebound Fuels Housing Demand


According to the Australian Bureau of Statistics (ABS), the year leading up to February 2025 saw 1,118,710 permanent and long-term arrivals, offset by 680,030 departures, resulting in a net gain of 438,680 people. February alone recorded 111,740 net arrivals, with 158,980 arriving over the quarter .​MacroBusiness


This influx has significantly increased demand for housing, particularly in urban centers, where rental vacancy rates are already at historic lows. The surge in population is outpacing the construction of new dwellings, leading to heightened competition for available rental properties.​



Rental Affordability Crisis Deepens


The increased demand has led to a sharp rise in rental prices. National rents have surged over 14% in the past two years, with a 7.3% increase in 2023 and a 6.4% rise in 2024, outpacing the 6.6% Consumer Price Index (CPI) .​heraldsun


PropTrack data reveals that the share of affordable rentals has collapsed to its lowest since 2008, with only 36% of listings affordable for median-income households. Young Australians and low-income earners are particularly affected, facing limited options and increased financial strain.​heraldsun


Policy Responses and Debates


The rental crisis has become a focal point in the upcoming federal election. Prime Minister Anthony Albanese's pledge to deliver 1.2 million new homes by 2029 faces challenges, with forecasts indicating a likely shortfall of 160,000 homes due to labor shortages, regulatory hurdles, and rising material costs .​heraldsun+1The Australian+1The Australian


Opposition Leader Peter Dutton advocates for reducing net migration by 100,000 to alleviate housing pressures, contrasting with Albanese's "big Australia" approach. Labor has committed $33 billion to housing initiatives, while the Coalition proposes a $5 billion infrastructure fund to support 500,000 homes.​The Australian


Advocacy groups like Everybody's Home call for bold reforms, such as limiting tax breaks for investors and investing in affordable housing. Experts also urge the adoption of build-to-rent models and the reduction of regulatory barriers to increase housing supply .​heraldsun



Looking Ahead


Without immediate and effective policy interventions, the rental market is expected to remain under significant pressure. The combination of high migration rates and insufficient housing supply continues to challenge affordability and accessibility for many Australians.​


As the nation grapples with these issues, the upcoming federal election may serve as a turning point in addressing the housing crisis and implementing sustainable solutions.​The Australian


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