Net Migration Australia 2024 and Its Impacts on Housing Crisis

Have you ever wondered why Australia is like a magnet, attracting people from all over the world? Well it’s not just about its beautiful landscape and breathtaking scenery. Australia is a popular destination for people looking for a better lifestyle, a promising economic future, advanced medical facilities and a welcoming community.

Every year, a large population of international students and skilled workers visit Australia to live, work, or study in the country. Simultaneously, many local residents also travel abroad for different reasons. But, here is the twist i.e. in recent years, the number of people immigrating to the country has increased as compared to those who are leaving.

This change is more than just a number; it’s transforming the demographics of Australia and upsetting the delicate balance between incoming and departing migrants. According to the net migration Australia 2024 forecast, this upward trend is expected to persist, significantly influencing the country’s social landscape, particularly housing availability and affordability. 

Before moving to the annual 2024 net migration Australia data and how it is impacting the living standard in the country let’s first understand what net migration thing is all about.

What is Net Migration?

The difference between the number of individuals immigrating to the country and the number of individuals leaving the country defines net migration. Generally, net migration is calculated by deducting the total number of immigrants from the total number of emigrants within a definite time period. Net migration has a significant role in promoting a country’s economic growth and cultural diversity.

Net Migration in Australia in 2024

Net migration in Australia is defined by the specified period of spending at least one year within 16 months in Australia or abroad. According to the Australian 12/16 month immigration rule,

• A net overseas migration (NOM) arrival is an incoming overseas who remains in Australia for 12 months or more within 16 months and is not currently included in Australia’s population.
• A NOM departure is defined as a departing individual who counts as a member of the population and is away from Australia for one year or more within 16 months.

Net Migration Australia Statistics

Australia’s net migration in recent years has been characterized by a positive influx, contributing to the nation’s growth and diversity. The reason for this increase is the country’s robust economy, a high standard of living, and a welcoming community. Moreover, Australia has one of the world’s best education systems, attracting more international students from different regions.

Let’s discover what the statistics reveal about net migration patterns in Australia.

• In October 2023, the government made predictions about the net overseas migration Australia forecast, estimating around 235,000 people in 2024. It is anticipated that this would resemble the pre-pandemic figure. 
• According to the Australian Bureau of Statistics (ABS), Australia’s population will increase by 2.2% to 26.5 million in the next 12 months. 
• Beidar Cho, the head of the ABS department of Demographics, stated: “Net overseas migration accounted for 81% of growth and added 454,400 people to the population in the year to March 2023, 13 months after international borders were reopened.”

The following graph illustrates the net migration rate statistics for Australia, depicting the changes in people relocating to and from the country throughout different years. 

As of 2023, the net migration rate stands at 5.173, indicating a large number of people entering the country compared to those departing. This positive net migration suggests an anticipation of even more people arriving in 2024. A positive influx in net migration can have many socio-economic influences on the Australian landscape, with a predominant impact on the accommodation sector.

Latest News and Updates on Net Migration Australia 2024

Net migration Australia 2024 is expected to return to more typical levels, with estimates at 510,000 at its highest in the most recent financial year. By 2025, it is likely to drop to 250,000. The Albanese government plans to tighten visa requirements for international students and migrant workers to keep the pace between immigrants and accommodation. Diana Mousina, deputy head economist at The Australian Mutual Provident Society  (AMP), says 

“The high pace of immigration is not compatible with the level of housing supply that we have in this country. We’re just not building enough homes to keep up with our population growth.” 

“If we had enough housing supply and infrastructure that went along with very high levels of immigration, then it could become sustainable. But what we’re seeing is that there’s too much pressure on the rental market, and that’s adding to inflation.”

Impact of Net Migration Australia 2024 on Housing Affordability

Overseas migration is often cited as one of the main reasons influencing the housing market in Australia. As net overseas migration has reached record highs, rents are rising, and vacancy rates are falling due to high-interest rates. Rent values have grown 6.0% during the same period, while national housing values have increased 7.2% this year.

Compared to demand, the frequent shortage of housing supply has resulted in heightened competition in property prices, especially in big cities in Australia. Sydney and Melbourne have presumably seen the most significant increases in real estate prices. In fact, over the last ten years, Sydney’s median house price has risen by more than 100%.

Important Factors Impacting on the Housing Crisis in Australia

These factors have a strong impact on of net migration in Australia for home affordability:

1. Population Growth

The influx of international students and workers contributes to population growth in major cities with concentrated universities. The pressure on affordable housing has increased by this trend of urbanization, particularly in metropolitan areas. Over the past ten years, the number of people moving to the country has increased significantly, with annual net migration in Australia 2024, with an average ratio of 240,000 persons annually.

2. Supply and Demand Imbalance

An imbalance in the supply and demand has resulted from a lag in the construction of new homes compared to the swift increase in population. People in Australia are now struggling to build houses due to increased interest rates and less money to spend on property. Furthermore, it is quite challenging for them to meet the prolonged bureaucratic planning and approval procedure for new housing constructions in the country. This, in turn, significantly raises the cost of existing properties.

3. Rental Market Pressure

With increased immigration to Australia, the need for rental houses has increased. It has increased rents, making it more challenging for foreigners and local residents to find reasonably priced rental homes. In the short run, rents will continue to rise due to migration against a static housing supply. It is anticipated that the unaffordability and scarcity of rental houses would put further strain on the rental market throughout the year.

Data on the Australian Rental Market

Let’s break down the latest facts and figures to provide you with a clear picture of the latest trends in rent prices of houses in Australia; 

• New data from SQM Research indicates that there are currently 32,814 rental properties available nationwide, putting pressure on rent prices.
• As per a survey by the National Housing Finance and Investment Corporation, Australia is expected to drop out on 106,300 homes from 2024 to 2027.
• According to a survey by the Australian Housing and Urban Research Institute, migration is also responsible for almost one-third of Australia’s 20-year increase in rental prices. 
• Research has shown that the median weekly rent for an apartment in Melbourne is $450, 20% more than a year ago. 
• CoreLogic’s report in Sydney shows that the median weekly rental price has risen to $699.

Balancing Growth and Housing Affordability in Australia

Undoubtedly, Australia is a top destination for international students and workers, playing an essential role in enhancing the country’s economic development and cultural diversity. However, the significant net migration in recent years has brought new difficulties, primarily dominant in the housing sector.

As we navigate these problems, urban planners and policymakers must address the imbalance between supply and demand in the housing sector. They must promote a housing stock that can adapt to the changing requirements of an expanding population. 

In the long run, achieving this balance will reduce the pressure on the housing market and guarantee that the advantages of net migration keep improving the fabric of Australian society. Growth and affordability must coexist in harmony to maintain Australia’s vibrant and varied landscape.

Final Thoughts

To conclude, it’s critical to address the housing crisis matter thoughtfully, acknowledging that several other factors influence housing dynamics in addition to international students and workers. Comprehensive strategies including, housing supply, urban planning, and laws intended to improve affordability for all residents, are needed to address the housing crisis. There must be cooperation between stakeholders and policymakers to create solutions that support inclusive and sustainable housing markets.

If you are searching for professional help related to immigration and accommodation in Australia, The Migration is here to support you. Our dedicated team of MARA-certified agents provides visa consultation services to international students and skilled workers. Whether navigating immigration procedures or seeking permanent residency solutions, we are committed to helping you make informed and seamless decisions.

FAQs

How many international students does Australia plan to admit annually?

In figures, Australia is set to drastically reduce its yearly admission of 510,000 international students by half in the next two years. It will be achieved by imposing more stringent assessments on international students and rejecting workers with lower skill levels.

Have any recent changes in immigration policies impacted the housing market in Australia?

Recent changes in immigration laws can impact the home market. These adjustments might involve modifications to skilled migration requirements, visa policies, or other elements that affect the demographics of immigrants.

How many immigrants in Australia in 2024?

Australia’s migrant population has expanded by more than 700,000 individuals during the fiscal years 2022 and 2024.