9 Feb 2023

International migration is forecast to bounce back to 195,000 migrants in 2023. Here’s a quick look at how new arrivals will interact with the housing market.

Migrants typically rent (70%) when they first arrive in Australia. Within 9-years of arriving in Australia, they are more likely to be homeowners (56%) than renters (44%).

Migrant Tenure Over Time, Australia

Source: ABS

Click to enlarge.

This translates to an immediate need for 53,000 rental dwellings this year and by 2031 a total of 425,000 rental dwellings to house new residents. This is based on net overseas migration gradually returning to the 2019 level by 2025 and maintaining that level to 2032.

With vacancy rates across our major cities already below long-term averages, this presents a significant opportunity for investors and a real challenge for policy makers.

Australia’s emerging Build-to-Rent (BTR) sector is well-placed to leverage future migration and support their housing needs. In particular, skilled migrants with higher-than-average incomes are well suited to the BTR model, which typically attracts a premium over market rents for the various benefits associated with it, including security of tenure, an institutional landlord, and higher amenities.

Cumulative Dwelling Need to Support Net Overseas Migration, Australia

Source: ABS, Urbis

Click to enlarge. 

Get in touch with our team to find out more about opportunities in the residential market.


Mark Dawson View Profile
Dylan Gray View Profile