Migrants linked to rising house prices
A demographic study points to immigration as a major contributing factor to Australia's soaring property prices, contradicting the Federal Government's stance that there's no link. “Migration and the Housing Affordability Crisis” author Bob Birrell found that immigration is responsible for up to half of Sydney's housing demand, 33 per cent of demand in Perth, 29 per cent in Melbourne, 22 per cent in Brisbane and 21 per cent in Adelaide.
Professor Birrell said that net foreign migration is likely to drive Australia's housing demand for the next 20 years. But Peter McDonald of the Australian National University says that immigration is just one of the drivers of demand. The others are the ageing population and the trend towards smaller households.
Birrell's findings have been released as the Productivity Commission begins its inquiry into first-home affordability in Australia.