December 26th, 2023 at 06:00 am
Australia’s Net Migration in 2024 and Its Effects on the Housing Crisis
Why does Australia attract people from around the world like a magnet? There’s more to it than its stunning landscapes. Australia attracts those seeking a better lifestyle, a bright economic future, modern medical facilities, and a welcoming environment.
Many overseas students and skilled workers live, work, or study in Australia each year. Additionally, many locals migrate abroad for various reasons. However, in recent years, more people have immigrated to the country than left.
This transformation is changing Australia’s demography and disturbing the delicate balance between entering and exiting migrants. The net migration Australia 2024 estimate predicts this increased trend will continue, affecting the country’s socioeconomic landscape, particularly housing availability and affordability.
Let’s define net migration before discussing the 2024 net migration Australia data and how it affects living standards.
What is Net Migration?
Net migration is the difference between immigrants and outmigrants. In general, net migration is computed by subtracting immigrants from emigrants during a certain time period. Net migration boosts economic growth and cultural variety.
Australian Net Migration 2024
Australia defines net migration as spending at least one year in Australia or overseas for 16 months. The Australian 12/16-month immigration rules
- Net overseas migration (NOM) is an arriving foreigner who stays in Australia for 12 months or longer within 16 months and is not currently in the population.
- A NOM departure is a population member who leaves Australia for a year or more within 16 months.
Australia Net Migration Statistics
Recent net migration has been favorable, contributing to Australia’s growth and variety. The country’s strong economy, good quality of life, and welcoming community explain this trend. Australia’s world-class education system attracts international students from throughout the world.
Find out what Australian net migration figures show.
- The Australian government predicted 235,000 net foreign migrations in 2024 in October 2023. It should resemble the pre-pandemic figure.
- Australia’s population will rise 2.2% to 26.5 million in the next year, according to the ABS.
- According to ABS Demographics head Beidar Cho, “Net overseas migration accounted for 81% of growth and added 454,400 people to the population in the year to March 2023, 13 months after international borders were reopened.”
Australia Net Migration Statistics
The net migration rate will be 5.173 in 2023, indicating a high influx of immigrants. This positive net migration indicates more arrivals in 2024. Positive net migration can have various socioeconomic effects on Australia, especially the accommodation industry.
Net Migration Australia 2024 updates
Net migration in Australia in 2024 is predicted to recover to normal levels, with forecasts at 510,000 at its highest in the previous financial year. It may shrink to 250,000 by 2025. The Albanese government proposes to tighten visa procedures for international students and migrant workers to keep immigrants and housing on track. According to AMP deputy chief economist Diana Mousina,
“Our housing supply cannot accommodate the high immigration rate. We’re not developing enough homes for our population growth.”
If we had enough housing, infrastructure, and high immigration, it could be sustainable. But the rental market is under too much pressure, which is driving inflation.”
Net Migration Australia 2024 and Housing Affordability
Migration from other countries is one of the most important variables that influences the housing market in Australia. The combination of high interest rates and record net foreign migration is causing rents to increase while at the same time vacancy rates are decreasing. This year, rents increased by 6.0%, while the national home value increased by 7.2%.
The persistent lack of available dwelling spaces has led to an increase in the level of competition for property prices, particularly in major cities in Australia. The increases in real estate prices are most likely to have been seen in Sydney and Melbourne. The median price of a home in Sydney has climbed by almost one hundred percent over the course of the last decade.
The Australian Housing Crisis: Key Factors
These factors strongly affect Australian net migration for housing affordability:
1. Population Growth
International students and workers boost population growth in university cities. Urbanization, especially in cities, has put a strain on cheap housing. In the previous decade, net migration to Australia has grown, with 240,000 individuals moving annually in 2024.
2. Demand/supply imbalance
The slow development of new residences compared to population growth has caused a supply-demand imbalance. Higher mortgage rates and less money for property have made housebuilding difficult in Australia. They struggle to satisfy the lengthy bureaucratic planning and approval process for new house construction in the country. Existing property prices rise dramatically.
3. Rental Market Pressure
Increased immigration to Australia has raised rental house demand. It has raised rents, making it harder for tourists and locals to find affordable rentals. Migration versus a static housing supply will raise rents temporarily. Rental housing unaffordability and scarcity are expected to impact the rental market throughout the year.
Australian Rental Market Data
Let’s break down the newest facts and numbers to show you the latest house rent trends in Australia:
- New SQM Research data shows 32,814 rental units nationally, increasing pressure on rents.
- A National Housing Finance and Investment Corporation analysis predicts Australia will lose 106,300 dwellings from 2024 to 2027.
- The Australian Housing and Urban Research Institute found that migration accounts for roughly one-third of Australia’s 20-year rental price growth.
- Research shows that Melbourne’s median weekly apartment rent is $450, 20% higher than a year earlier.
- CoreLogic reports a $699 median weekly rental price in Sydney.
Balancing Australian Growth and Housing Affordability
International students and workers are a major draw for Australia, boosting its economy and culture. But recent net migration has caused additional problems, especially in housing.
Urban planners and legislators must address the housing supply-demand imbalance as we traverse these issues. They must promote housing that can accommodate a growing population.
This equilibrium will eventually lessen housing market pressure and ensure that net migration continues to improve Australian society. Growth and affordability must coexist to preserve Australia’s diversity.
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