Industry calls for stable migration policy to support home building
Demand for housing in Australia is continuing to exceed available supply, as new data from the Australian Bureau of Statistics (ABS) reveals ongoing population growth driven by migration.
The March quarter 2025 figures show that the nation’s population has surpassed 27.5 million, intensifying pressure on the housing market and underscoring the challenges facing the construction sector.
The ABS reported a net gain of 110,060 overseas migrants in the first quarter, with the annual net migration figure reaching 315,920. While migration levels have moderated from earlier highs, they remain well above the pre-pandemic decade average of less than 220,000.
Population growth has exceeded pre-pandemic trends in several states and territories, with Western Australia and Queensland leading the increases. South Australia, Tasmania, the Australian Capital Territory, and the Northern Territory have also recorded gains, while New South Wales and Victoria remain below their pre-pandemic population growth trajectories.
Leading indicators have been suggesting that the country’s population growth, on the back of overseas migration, is likely to remain elevated compared to historical averages.
The Housing Industry Association (HIA) has emphasised the need for stable population policy to support the home building sector, which has experienced significant fluctuations in recent years.
“HIA supports a managed migration system that delivers adequate skilled migrants in construction and building professions and trades to meet Australia’s ongoing housing needs,” said Tim Reardon (pictured right), chief economist at the Housing Industry Association. “Volatile migration flows lead to undesirable economic, social and business outcomes.”
Reardon stressed that all levels of government should be responsible in addressing housing demand and supply. “The Australian government creates housing demand through immigration, while state and local governments are responsible for housing supply and the price of homes reflects their ability to work cooperatively,” he said.
While the goal of stable and reliable migration pathways has not been balanced with the removal of restrictions on new home building, recent policy initiatives, including the Home Guarantee Scheme and reforms to state planning systems, have been acknowledged as positive steps.
“The government’s Home Guarantee Scheme to help first-home buyers into the market, and the streamlining of state planning systems, are welcome steps in the right direction,” Reardon said. “With time, more supply will be delivered as a result of recent policy announcements.”
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