Australia expects net migration to surge to a record 400,000 people in the fiscal year ending June, almost doubling from forecast and adding pressure on the already overburdened housing market.
(Bloomberg) — Australia expects net migration to surge to a record 400,000 people in the fiscal year ending June, almost doubling from forecast and adding pressure on the already overburdened housing market.
The estimates were discussed at a meeting of Australia’s federal, state and territory leaders in Brisbane on Friday, according to a government spokesman. The talks form part of a larger conversation on how to reform Australia’s immigration system as well as easing the strain on shelter as home rents surge and the housing crunch worsens.
The latest data follow Thursday’s announcement by the Home Affairs Minister Clare O’Neil that Australia will revamp an immigration system that’s “broken,” overly complicated and open to exploitation. The government in October had forecast net migration to increase by 235,000 people in the financial year ending in June.
The figure is expected to stay elevated in the coming financial year, with more than 315,000 people expected to arrive by June 2024.
The migration boom is aggravating a housing crunch in a nation that faces a shortfall of more than 100,000 homes over the next five years, pushing rents to rise the most in more than a decade in the first quarter.
Out of the 400,000 net new arrivals in Australia, international students make up 50%, indicating a bright outlook for Australia’s lucrative tertiary education sector.
The Australian government said on Friday it would join with states and territories to consider new regulations to assist renters for an announcement in the second half of 2023.
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