Peter Dutton has doubled down on his warning a migration boost would worsen the nation’s housing crisis, despite a new report saying otherwise.
The looming fear of high population growth is expected to put economic pressures on the housing market but “the pressures are already there”, says demographer Simon Kuestenmacher. “We were negligent in not providing enough housing, not providing enough infrastructure for that big population growth that we actually knew we wanted as a nation,” Mr Kuestenmacher told Sky News Business Editor Ross Greenwood. “On top of this, for decades we didn’t build enough social housing.”
Mr Dutton has warned forecasted net overseas migration of around 1.5 million over the next five years would not be good for the country, especially if the government has “no plan in the budget to bring more housing stock online”.
His comments come as the government warns its opponents to “get out of the way” of its $10bn housing future fund, while the business council smacked down claims migration is fuelling the crisis, and recommended tying national housing targets to population growth.
Mr Dutton said adding a projected 1.5 million people to the population, while simultaneously “taking money out of roads and out of infrastructure that would relieve congestion” would “make a bad situation much worse”.
“You can’t announce a Big Australia policy, with 1.5 million people coming to Australia over five years, competing with Australians who can’t rent a unit or a house now, who can’t afford to buy a house now,” Mr Dutton said on Monday.
“You’re going to put upward pressure on prices, both rent and home prices, at the same time that you’re choking supply”.
But a new report by the Business Council of Australia notes a lack of supply in the housing market – and not migration – had fuelled the growing issues in the sector.
The Business Council of Australia has recommended the national housing target be tied to population growth projections. Picture: NCA NewsWire / John Gass
Chief executive Jennifer Westacott said housing supply had been falling over the last five years, and Australia needed a “clear plan” for building new homes and infrastructure aligned with population growth.
“There is simply not enough new homes being built to meet demand at a time when housing affordability is declining. In fact, new housing supply has been falling over the last half-decade,” she said.
“There needs to be a clear plan for building new homes and infrastructure that is aligned with the growth in Australia’s population.”
The council has urged the parliament to pass the government’s housing policy, which was blocked from a vote last week by the Greens and the Coalition.
The Greens say the fund, which would build 30,000 new social and affordable homes in the next five years, does not do enough to solve the crisis. They want a national rent freeze and the annual spending cap of $500m to be increased significantly.
Housing Minister Julie Collins said the government was trying to take the action needed to soften the crisis.
“I would say to Liberal senators and to Greens senators in the Senate, we took this to the last election. We’re trying to legislate it, and they should get out of the way,” she told ABC.
“There are too many people in Australia that are relying on those homes, there are too many Australians that are doing it tough that need us to get on with the job.”
Prime Minister Anthony Albanese accused the Greens of “failing the public” and “playing politics”.
“There is a gap between their rhetoric and their delivery. This is them putting politics before what is needed,” Mr Albanese said.
“It is beyond my comprehension how they could vote against it.
“The truth is that the Greens political party would rather posture than vote for what is before the parliament. They need to explain that contradiction.”
Housing Minister Julie Collins has called on senators to back the housing fund. Picture: NCA NewsWire / Martin Ollman
The Business Council’s report also recommended offering states and territories financial incentives to meet housing targets, while those who don’t meet the target would be penalised.
“Business welcomes the government’s commitment to the Housing Accord, which aims to build one million new homes over the next five years from 2024; however, better co-ordination with state governments is crucial,” Ms Westacott said.
Ms Collins said that was something already being done, and talks were continuing with state and territories about funding arrangements.
“They’re doing them through the National Housing Accord already. I welcome support for measures we have implemented, things like changes to build to rent, things like changes to depreciation and working with planning ministers at the state level and state governments about improving the time it takes to get more homes on the ground right across the country,” she said.
“We already started that important work.”