Wrong to blame housing crisis on migration & we need a better plan to fix it.
Recent critisism that policy makers ‘Big Australia’ strategy worsens Australia's housing crisis through its migration policy overlooks important factors. While migration contributes to housing demand, it also brings economic benefits to the local economy. Blaming migration alone is misguided.
Record-low rental vacancy rates and rising rents are driven by increased housing demand due to factors like the work-from-home trend. The government's proposed solutions, such as the Housing Australia Future Fund and tax incentives for build-to-rent (the later of which we strongly support) are unfortunatly insufficient given the size of the problem.
To address the housing crisis effectively, we need a comprehensive plan that focuses on regulatory reform, increased housing construction, and stimulating new supply. Rather than relying heavily on government stimulus to support people in affording housing, we should encourage market-driven solutions that promote affordability.
It's important to recognize that migration plays a significant role in Australia's economic growth and prosperity. It brings skilled workers, entrepreneurs, and investment, which benefit the local economy in various ways and can assist with bringing inflation under control.
Taking aim at issues relating to population is especially odd when the 2023 budget predicts that population will remain smaller than was expected before Covid in the Liberal’s 2019 budget projections for nearly a decade. Migration certainly means we need more homes. But how does a smaller population than was expected just four years ago lead to a rental crisis?
Blaming migration alone is an oversimplification. We need to address the housing crisis holistically, promoting both supply-side solutions and policies that support affordability.
While it is wrong to blame our housing crisis on migration, it’s correct in saying that the government needs a better plan to fix it.
Pi Capital believe there needs to be a comprehensive approach that ensures adequate housing supply attracts institutional and private capital to the sector, while still recognizing the positive impact of migration on our economy.
Link to full article by Brendan Coates via Grattan Institute - click here
