The Real Estate Institute of Australia (REIA) has warned that record-high migration levels coupled with an exodus of property investors are exacerbating Australia’s housing affordability crisis.
REIA President Leanne Pilkington highlighted the mismatch between housing supply and demand, citing recent figures from the Australian Bureau of Statistics (ABS).
“The lack of adequate housing supply combined with high migration has created an unsustainable situation, leaving Australians—especially renters and first-time buyers struggling to keep up with price hikes and limited availability,” Pilkington said.
According to the ABS data, net permanent and long-term arrivals from January to August 2024 reached a record 356,940, surpassing the previous year’s intake.
Despite this surge in migration, housing approvals are significantly lagging behind. In August, there were only 13,991 approvals, equating to just 59% of new arrivals for the same period.
Pilkington criticised the government for failing to address this imbalance, which she said is driving inflation and rising housing costs.
While the value of new investor loans rose 1.4 per cent to $11.7 billion, 34.2 per cent higher than August 2023, Pilkington cautioned that this reflected price growth rather than an influx of new investors.
“Seeing decreases in investment loans for most states across the country is concerning, especially in light of current discussions surrounding negative gearing,” she said.
The REIA president warned that proposed reforms to negative gearing and capital gains tax could further discourage property investors, potentially worsening the supply crisis.
Pilkington called for urgent policy intervention to address housing affordability across the country, emphasising the need for measures that encourage housing supply as a long-term solution.
She noted that while reports of easing rent prices may provide some immediate relief, the focus should remain on sustainable affordability for both first-home buyers and investors.