We’re expecting 440,000 more people: Is Australia’s population surge good for you?

Our population is exploding! And last week, the Government revised its population growth forecasts – not by a small margin, but by a whopping 22%.

Instead of the predicted 360,000 people, we’re now looking at an increase of 440,000. That’s an extra 80,000 – or the equivalent of adding an entire stadium of people to this great nation of ours.  

So, what’s causing this population growth, I hear you ask? 

You can thank overseas migration, with international students leading the charge. In February alone, we broke the record for the most international student arrivals – 200,000. Right now, there are 800,000 international students in Australia. 

And let’s not forget that this surge is happening despite the Government trying to throw some hurdles in the mix, like doubling non-refundable application fees and raising financial and English requirements.

You’d think those barriers might slow things down, but nope. 

So, why can’t we get it right? Here’s where it gets tricky. Honestly, I don’t think you can believe much of what politicians say when it comes to migration.

There are two possible reasons for this population explosion.

The first is that controlling population growth is a bit like trying to herd cats. There are just too many people moving in and out of the country each year. Visa approvals? Plenty. People leaving? Yep, they’re going too. But the net increase, well, it’s not an exact science.

The second, less likely, but still entertaining theory is that the Government might be enjoying the population boom… just a little too much.

After all, with an ageing population and a bunch of promises to fund in an election year, they might not want to slow things down. More people equal more taxpayers. Cutting back on the population would mean cutting expenses (i.e. people’s benefits) – and let’s face it, that’s political suicide. 

So, as much as it sounds like a conspiracy theory, it wouldn’t surprise me if they’re doing the bare minimum, just to look like they’re trying to stem the tide.

What can we do about it? Well, buckle up – because the answer is, not much. No politician – Labor, Liberal, Greens, or whatever Clive Palmer is calling his party these days – is going to take serious action to curb population growth. Realistically, making cuts to health and welfare benefits? That’s not exactly the best way to win votes.

But there is some good news: while we can’t stop the population growth, we can make the most of it.

Housing is the biggest consequence of population growth. It has the single biggest influence when it comes to driving house prices and rents.

Anyone who says otherwise is in denial.

The second biggest influence is the supply of new housing to house these migrants.

To house the extra 440,000 people due to come into Australia this year, we will need to build about 220,000 houses. We will be lucky to build 160,000 at the rate we are going.

And if you thought that was bad, the Urban Development Institute of Australia predicts that the Government’s target of building 1.2 million homes by 2026 will fall short – suggesting it will be more like 900,000 homes.

That’s two out of every three houses we need. It’s like ordering a pizza for 10 people, but only getting enough for 6.

If you’ve been thinking about buying a home or investing in property, the time to act is now.

The numbers don’t lie – demand for housing is about to skyrocket and so will prices. If you’ve been waiting for the “perfect moment”, this is it. Think of it like a green traffic light: it’s time to go!

Seize the moment, because this population boom isn’t slowing down anytime soon.