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Above-trend population growth remains driven by elevated net overseas migration.
Net overseas migration (NOM) was 26.3 per cent higher over the 2023 calendar year. The rate of migration did however slow in the December quarter 2023.
This still leaves the estimated resident population around 25,000 people below its pre-pandemic trajectory. This is based on the rate of growth from the decade to 2020.
“The building industry has consistently argued for stable and reliable population growth. The boom/bust cycles in migration seen over the pandemic period leads to undesirable economic, social and business outcomes,” said HIA Chief Economist, Tim Reardon.
“As the main determinant of population growth, the fluctuating nature of NOM has a crucial impact on workforce participation numbers, national skills capacity, productivity and overall economic output,” added Mr Reardon.
“HIA supports a managed migration program that delivers adequate skilled migrants in construction and building professions and trades to meet Australia’s ongoing housing needs.
“HIA estimates that Australia’s future underlying housing demand sits above 200,000 homes per year. Unfortunately, only 172,725 dwellings were completed in the calendar year 2023, This will add to rental and house price pressures.
“The stark demand/supply imbalance in new home building requires significant and swift policy action from all levels of government.
“Up to 50 per cent of a new house and land package is taxes, fees and charges. Reducing these costs is necessary to delivery more homes,” concluded Mr Reardon.
The Housing Industry Association (HIA) is urging the government to hit pause on the proposed Free TAFE Bill 2024. While the initiative promises to address critical skills shortages, HIA believes the plan needs a comprehensive review before it’s locked into law.
HIA provided a response to the Senate Education and Employment Committees on the inquiry into the Free TAFE Bill 2024.
The Housing Industry Association (HIA) welcomes the Coalition’s announcement allowing first home buyers to access up to $50,000 of their superannuation to purchase a home. This initiative represents a meaningful step towards addressing the significant barriers to home ownership faced by young Australians,” stated HIA Managing Director, Jocelyn Martin.
On behalf of all of us at HIA we would like to wish you a very happy 2025! As everyone heads back to work for the new year, we are sharing some exclusive member updates to get you ready for what lies ahead.