Key Takeaways:
- The Australian housing crisis is causing difficulties for British tourists and expats who are struggling to find affordable places to live and work.
- The rental market is highly competitive, with multiple applicants vying for a single listing, and rents are increasing at a rapid rate.
- The National Housing Accord aims to build 1.2 million new homes between 2024 and 2029 to address the housing shortage, but the current rate of construction is not meeting this target.
- The influx of migrants is adding to the pressure on the housing market, with critics warning that it is driving up house prices and rents, and straining services and infrastructure.
- The Australian government’s migration policies have been criticized for exacerbating the housing crisis and making it difficult for people to achieve the dream of home ownership.
Introduction to the Housing Crisis
The Australian dream of sun-kissed beaches, outdoor living, and a relaxed lifestyle is proving to be a myth for many British tourists and expats. The harsh reality is that a nationwide housing crisis is making it difficult for people to find affordable places to live and work. Holly Beddall, a 22-year-old fashion marketing assistant from the UK, is one such example. She has been documenting her struggles to break into the Australian jobs and rental market on TikTok, where she has 25,000 followers. Beddall’s experience is not unique, and many others are facing similar challenges in finding a place to call home.
The Competitive Rental Market
The rental market in Australia is highly competitive, with multiple applicants vying for a single listing. Beddall’s own experience is a testament to this, as she had to attend numerous apartment viewings and was eventually offered a room in Bondi for $580 per week after a 12-month struggle. She believes that she only got into her home because she shared friends with the previous tenant, highlighting the difficulties of securing a rental property in a crowded market. The latest PropTrack rental figures reveal that rents are continuing to rise, with some suburbs recording double-digit growth in just three months. This is further exacerbating the housing and cost-of-living pressures that many people are facing.
The National Housing Accord
The National Housing Accord aims to build 1.2 million new homes between July 1, 2024, and June 30, 2029, in an effort to address the housing shortage and spiraling home and rental prices. However, the current rate of construction is not meeting this target, with only 186,000 approvals for new homes across the country in the 2024-2025 financial year. This is well short of the 240,000 new homes that need to be built each year to meet the target. The lack of new residential properties being built is having a significant impact on the rental market, making it even more difficult for people to find affordable places to live.
The Impact of Migration
The influx of migrants is adding to the pressure on the housing market, with critics warning that it is driving up house prices and rents, and straining services and infrastructure. Australia’s migration intake has exploded in recent years, with 110,062 new arrivals in the March quarter, equivalent to 1223 people every day. This is double the pre-pandemic quarterly average, and migration is now accounting for three-quarters of population growth. The Institute of Public Affairs has warned that the surge in migration is overwhelming housing supply, worsening rental shortages, and fuelling record property prices. The think tank’s deputy executive director, Daniel Wild, has stated that the elevated level of migration is no longer a post-pandemic catch-up, but rather the new normal under the Albanese government.
The Consequences of the Housing Crisis
The housing crisis is having far-reaching consequences, not just for individuals like Holly Beddall, but for the broader community. The dream of home ownership is becoming increasingly unaffordable for many Australians, and the pressure on services and infrastructure is unsustainable. The Albanese government’s migration policies have been criticized for exacerbating the housing crisis, and there are calls for a more sustainable approach to migration and housing policy. Ultimately, the housing crisis is a complex issue that requires a comprehensive solution, including an increase in the supply of affordable housing, a more sustainable approach to migration, and policies that support those who are struggling to find a place to call home.
