Property + People: Why Migration Matters
Every week I get asked some version of the same question:
“Why do house prices keep climbing, even when interest rates are high?”
And while there are lots of moving parts, one factor keeps coming back into focus: population growth.
New figures from the Australian Bureau of Statistics show there were 110,062 new arrivals in the March quarter alone.
That’s 1,223 people every single day!
On a yearly basis, it’s almost 500,000 people which is back to the record levels we saw in 2022/23.
Here’s the kicker: every new arrival needs a place to live.
Rent, buy, or share. It all adds pressure to our housing market.
Over the last three years, migration is slowly building back to record highs of 518,000 PA.
Add that to an undersupply of new housing and you’ve got the recipe for strong demand… even when borrowing feels expensive.
So what can you do about it?
Homeowners: rising demand helps support long-term property values. The key is keeping your loan structure sharp and regularly checking your equity (the portion you truly own). Managed well, that equity can become a powerful tool for creating future wealth and not just something that sits on paper.
Investors: strong population growth keeps rental markets tight, which means low vacancy rates and steady rental income. But not all suburbs or properties perform the same. The real opportunity comes from choosing locations with growing jobs, infrastructure and lifestyle appeal. Not just the cheapest property you can find.
First Home Buyers: yes, competition is tough but smart planning, savings structures and advice can help you break in. And from October 1, the First Home Buyers Guarantee expands which is allowing more buyers to purchase with as little as 5% deposit (and without paying lenders mortgage insurance). That could be the leg-up you’ve been waiting for.
One quote I love:
“Don’t wait to buy real estate. Buy real estate and wait.”
If you’re wondering how these migration trends might impact your property plans, Contact us with “Property Plan” and we’ll help map out your next steps.
Because whether you’re buying, investing or paying down debt: ignoring migration’s impact on housing is like ignoring the tide while standing on the beach.
P.S. So why does the government keep allowing this?
Simple: new arrivals also mean more workers.
More workers = more income tax for the ATO.
And that’s a much faster way to boost the budget than waiting for today’s kids to grow up and enter the workforce.
7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised through Cobalt Advisers Pty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative of Australian Finance Group Ltd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087.
This blog contains information that is general in nature. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.
