Reports released by two organisations – Master Builders Australia and Sustainable Population Australia – have highlighted a policy debate over whether migration is a solution or a contributing factor to the housing crisis.
Master Builders Australia, the nation’s largest construction industry association, in the release of its September 2024 Future of the Workforce report, claimed there is an urgent need for skilled workers to build the homes the nation requires.
The report forecasted that the building and construction industry needs 130,000 additional workers this year to overcome workforce shortages and keep up with demand.
Master Builders CEO, Denita Wawn, said the workforce gap presents an opportunity for growth in an industry that is pivotal to Australia’s economic success.
“Despite challenges, the industry is in a unique position to grow and innovate,” Ms Wawn said.
“It will require a holistic approach across Federal Government portfolios from migration, skills, and training through to industrial relations.
“Proposed solutions include increasing trade apprenticeships, leveraging skilled migration from similar regions, and fostering a diverse, inclusive culture to attract new talent from across the economy.”
Denita Wawn’s claim that skilled migration is necessary for addressing labour shortages and building new homes directly contradicted the views of independent not-for-profit organisation Sustainable Population Australia (SPA).
In a media release published on September 23, SPA National president Peter Strachan said the housing disaster will extend for years if the government continues to deny population growth.
“The government’s focus is on supply while the demand side is ignored,” Mr Strachan said.
“The result is a diabolical housing crisis causing misery for renters and home buyers alike.”
Until recently, Australia has successfully aligned construction dwelling with migration. Peter Dutton, on ABC Brisbane, noted that in the last 10 years – with the exception of Covid – “the number of … new dwelling builds has roughly matched the number of people coming in through the migration program.”
A depiction of the quarterly change in Australia’s total population, net overseas migration, dwellings completed and commenced over the last decade (The Guardian 2024).
The disconnect only began during the pandemic, with population and migration first dropping then increasing to an all time high, even as the number of dwelling completions and commencements remained roughly the same.
In August, the Albanese government pledged $3 billion in federal funding to tackle the housing crisis.
However, SPA’s Peter Strachan said the government’s target of 1.2 million new dwellings over five years will be impossible to achieve.
“The obvious solution is to stop adding to demand with sky-high immigration levels,” Mr Strachan said.
“This can be done relatively quickly by adjusting immigration visa policies and targets.”
“Why the government is not doing this is one of life’s great mysteries. But one thing is certain, if we don’t do it, this housing disaster will drag on for years.”
Sustainable Population Australia’s housing crisis advertisement
Dr Robert Breunig, a Professor of Economics at the Australian National University, researches immigration to Australia and its effects on the labour market. His work indicates the issue and potential solutions are likely more intricate than the positions presented by both Master Builders Australia and Sustainable Population Australia.
“The Australian economy has had a need for additional workers. If we close the country off to migrants, wages will go up. But we’ll also have a lot of labour shortages and a lot of services won’t get delivered,” Dr Breunig told Guardian Australia.
“That’s why the conversation is a little more complicated than ‘migrants drive up housing prices’.”
To explore the recent recommendations from both organisations, you can access the full detailed reports from Sustainable Population Australia here and from Master Builders Australia here.