Population Boom Intensifies Housing Crisis

Examining the Impact of Record Population Growth on Australia's Housing Shortage

Australia is grappling with an intensifying housing shortage, exacerbated by unprecedented population growth, as reported by Hotspotting. In 2023, the nation experienced a record population surge of 651,000 individuals, marking the highest annual increase in history, with overseas migration accounting for 84% of this growth.

“The record level of population growth last year did not cause the shortage of dwellings, including the under-supply of rental homes,” stated Terry Ryder, director at Hotspotting.

Impact of Population Growth

With the population now standing at 27 million, up 2.5% from the previous year, every state and territory has seen population increases, despite some areas experiencing a net loss due to interstate migration.

“The very high level of population growth last year has made a serious problem more dire,” Ryder noted.

Population Increases by State

Victoria led the nation in population growth, adding 186,491 new residents. Queensland recorded the largest net gain from interstate migration, with an overall increase of 141,378 people. Western Australia saw the highest percentage increase at 3.31%, followed by Victoria at 2.78% and Queensland at 2.62%.

“NSW made the biggest gains from overseas migrations but was the biggest net loser from internal migration,” Ryder observed.

Government Policies and the Housing Crisis

The current housing shortage is rooted in years of insufficient government policies, which have been further strained by the recent population surge.

“The seeds of this shortage were sown years earlier by inadequate government policy and have been exacerbated by poor governance every year since,” Ryder explained.

This rapid population growth has magnified an already critical issue, underscoring the urgent need for effective housing strategies to address the crisis.