The housing market is not prepared for the influx, with Australia just experiencing its biggest annual population growth since June 2020, with the coronavirus border closures becoming a distant memory.
This population influx will add to the pressure felt in some of the largest cities, as the rental market is already struggling with supply constraints and rising demand.
Overseas migration is increasing the demand for housing rentals.Photo: Getty
Recent national, state and territory population releases from the Australian Bureau of Statistics show that the country’s population grew by 0.9% annually through March 2022.
A significant contributor to this was the addition of 204,000 net migrants in the fiscal year ending March 2022.
Over the past two years, New South Wales and Victoria have seen little population growth. Border closures have had a considerable impact, as Melbourne and Sydney are regular bases for international students.
This has been exacerbated by increased interstate migration to Queensland by residents from the two largest states in search of lifestyle changes and more affordable housing.
However, with overseas migration now returning, rental demand for housing in the largest capital city is rising again, which is reflected in weekly rental prices and the number of potential renters per listing. It has been.
Since last August, the number of highly engaged users viewing rental properties in Melbourne has increased by an average of 32%.
Rental properties in Sydney and Brisbane are also attracting interest, with 26% and 20% growth in the number of potential renters for each property on realestate.com.au respectively.
In-depth insights from PropTrack’s team of experts:
As companies encourage people to return to the office and international students resume their studies in Australia, competition for inner-city rental apartments and single-family homes is heating up.
High demand and low supply have resulted in weekly rental prices rising 9% across the capital market over the past year.
Rents in Sydney, Melbourne and Brisbane are up 10%, 12% and 8% respectively.
As the number of overseas immigrants continues to increase, rental demand will remain high for the time being.
We expect little improvement in rental supply in an already tight rental market. These factors will put further pressure on rental prices in the short to medium term.