October 2, 2023 9:20 pm

Where Will the 1.755 Million New Immigrants to Australia Live by 2028?

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Australia Faces Net Housing Supply Shortfall of 252,800 Units by 2028

The Institute of Public Affairs (IPA) has conducted research revealing that Australia is on track to experience a net housing supply shortfall of 252,800 units over the next six years. This housing crisis can be largely attributed to the Commonwealth Government’s inability to control the influx of migrants following the lifting of international borders after the COVID-19 pandemic. According to the IPA’s findings, approximately 1.755 million new immigrants are expected to call Australia home between 2023 and 2028.

The Australian Financial Review has attributed this surge in migration to a resurgence in the number of individuals residing in Australia on student visas. This observation was acknowledged in the May 2023-24 Budget, which stated that the reopening of international borders has led to a swift recovery in the population of international students, skilled temporary visa holders, and working holiday makers. Second and third-year students who were studying online during the pandemic have been returning, while new students are also arriving in Australia to begin their studies.

It is worth noting that almost two-thirds of the more than 400,000 net new migrants in the financial year ending 2023 arrived in Australia on student visas. Additionally, an estimated two-thirds of the subsequent year’s net migration intake will consist of international students. Many of these students come to Australia primarily for employment and the opportunity to seek permanent residency, rather than solely for educational purposes. Part-time work opportunities and the potential for permanent settlement are often major selling points used by educational and immigration agents, as well as tertiary education institutions, to attract international students.

While the consequences of this unprecedented influx of international students are felt by both Australians and the students themselves, this housing shortage particularly impacts the educational experience of international students due to the lack of housing availability, especially in Australia’s capital cities. The IPA’s research report examines the impact that the current volume of international student arrivals has had and will continue to have on Australia’s housing shortage.

The effects of this surge in international students are evident not only in Australia’s housing shortage but also in the high cost of living and rental scarcity. Last year, the Albanese government oversaw the largest ever net intake of international students, exceeding 250,000 individuals. This figure is more than double the previous record of 122,000 set in the financial year ending in 2009. The presence of international students in the housing market resulted in them occupying up to 70% of the net new housing units supplied, leaving only 30% for the rest of the nation, including other new migrants.

Some argue that it is time for universities to contribute their share by paying taxes on the income derived from foreign students. As one of Australia’s biggest export earners, it is believed that universities should be subject to taxation in a similar manner to other export industries.

The implications of these findings prompt an important question: how many of these migrants will be from Islamic countries or China? This question raises concerns about the cultural and demographic impact of the influx of migrants on Australia’s society.

In conclusion, Australia is facing a significant shortfall in housing supply due to the government’s inability to control the influx of migrants, particularly international students. As this trend continues, the housing crisis worsens, impacting both Australians and international students. Urgent action is needed to address this issue and ensure the availability of affordable housing for all.

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Original Source: Where Will the 1.755 Million New Immigrants to Australia Live by 2028?

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