Andrew wrote the below opinion piece on immigration and housing, originally published in The Mercury:
That some political parties seek to pin the housing crisis on “immigrants” and “foreigners” is a grubby misdirection from those with a lot of anger but no real solutions.
The post-war baby boom and spike in migration saw Australia’s population surge rapidly, but governments planned for it and housing costs didn’t skyrocket. Population growth helps to keep our economy growing and our communities vibrant and functioning.
Rather than digging into ideological trenches, we should be able to admit that population growth, whether by immigration or naturally, does add to demand pressures which affect both house and rental prices. But it’s just one part of a much larger web of causes, and we should have capacity to meet these with solutions. Sadly, in the last fifty years or so, successive governments have failed at this, leaving many Australians rightly angry.
But the fact is that ending migration or completely banning foreign residents from buying homes is not actually a solution to the housing crisis. Simply put, those rushing to blame migration broadly, or immigrants specifically, are only seeking to exploit people’s anger for their own political purposes. And ending immigration would be a terrible self-inflicted harm on our country and economy.
Our immigration program is there to meet our needs and reflect our values. If we were to cut it to zero arbitrarily, we’d lose doctors and care workers who look after mum and dad when they need it. We’d lose tradies and the homes, roads and bridges they’d build. We’d lose many of the people who grow, pick, and pack the food on our farms. And we’d lose the open, welcoming character that has helped us embrace our place in our region and provide compassionate support to those fleeing oppression and persecution.
It’s a well-repeated line because it’s true; Australia is the most successful multicultural nation in the world. The story of Australia’s success, dynamism, and compassion is underpinned at every turn by the contributions of migrants.
So let’s inject some facts into this housing debate. One fact is that most foreign buyers are already banned from purchasing most homes in Australia. Current rules require foreigners or temporary residents who want to purchase a house to buy a new build or otherwise add to the housing supply. That’s why ABS data shows that the proportion of Australian homes bought by foreigners over the last 3 years has been less than 1% each year and falling. Of the total stock of housing in Australia, only 0.4% is owned by temporary migrants.
Another fact is that rents and property prices surged during the COVID pandemic when hundreds of thousands of temporary migrants left Australia. That’s because interest rates were low, local buyers and investors flooded the market, and large numbers of Australians chose to live in households with fewer people, which increased demand.
To be fair, critics of the post-COVID migration bubble are correct when they say too many were brought in too quickly, which further increased demand. But we should be careful to remember that was largely a catch-up after several years of very low immigration, and many will be leaving soon as their temporary visas begin to expire from next year.
Nonetheless the housing crisis is set to persist, and it demands a bold and comprehensive response that works to fix the problem, not a knee-jerk reaction that redirects people’s anger onto an easy target.
To this Federal Government’s credit, they’ve started the work on tax reform to take on price-distorting incentives that treat a house as an investment rather than a home. But we need more action, including building more social and affordable housing to improve supply; improving rental protections and national rental standards to give renters a fair go; and increasing public investment in combating homelessness, including providing more crisis services, accommodation and public housing.
This suite of actions would result in a sustainable rate of housing growth to which our migration level should be matched, while ensuring we get the skills our country needs; and that we can continue to offer compassion for those in need of refuge.
Some view multiculturalism as irrelevant or even counter to the material concerns of ordinary people. Some claim it’s an outdated distraction from bread-and-butter issues like housing, cost of living, health, national security and education. But the truth for a nation like ours is that immigration and multiculturalism are intrinsic parts of the way we secure these things for future generations. The real challenge facing Australians isn’t immigrants, it’s whether our governments have the courage and the competence to properly plan our migration intake and build enough homes, infrastructure and opportunity for a growing nation. Blaming immigrants might be a well-worn and politically convenient diversion, but it won’t lower a single rent payment or build a single new house.