Australia’s housing crisis deepens as immigration outstrips new home completions by three to one

Australia’s housing market faces severe strain as immigration outpaces new home completions by a ratio of three to one, according to analysis of Australian Bureau of Statistics (ABS) data by the Institute of Public Affairs (IPA). The think tank found that over the year to March 2026, housing supply increased by just 174,500 dwellings, while net overseas and long-term arrivals totaled 489,300—a gap that has deepened shortages and driven up prices. The IPA’s senior fellow, Dr Kevin You, highlighted that housing completions last year were 16% lower than in 2016, despite Australia’s population exceeding 28 million. Net permanent and long-term overseas arrivals for the March quarter alone reached 193,780, compared to just 54,200 new homes added to the market during the same period. Dr You criticized the federal government’s migration policies, stating they lack community consent and fail to address economic needs, while also undermining efforts to improve housing affordability. Industry professionals noted that migrants, many with wealth accumulated abroad, are driving demand for properties as soon as they secure permanent residency. Peter Li, general manager of Plus Agency, observed that buyers from countries like Vietnam, Hong Kong, China, and Indonesia are prioritizing home purchases upon gaining residency. Meanwhile, buyer’s agent Nathan Birch of B.Invested reported that migration is pushing up prices in lower-end markets, with buyers overpaying for homes in cheaper suburbs to secure purchases. The imbalance has led to competitive bidding, particularly in the $400,000 to $500,000 range, where Birch has seen deals collapse due to higher offers. He also dismissed claims that migration only affects rentals, arguing that many student visa holders intend to stay permanently, increasing long-term demand. The IPA’s data underscores a structural mismatch between Australia’s migration targets and housing construction capacity, exacerbating affordability challenges for domestic buyers.