What population boom means for housing

AUSTRALIA'S population is on the rise, and more people will mean more demand for housing, right? Not exactly. 

 
The rise in our numbers may have only minimal impact on the housing industry - at least in the near future.

It's all to do with Australia's changing social demographics and lifestyle choices.

Here's an overview of some population numbers.
Australia's population grew by 331,000 people last year, up from 254,000 two years ago.

Net overseas migration has more than doubled in the past 12 months, to 71,000 over the past three months.

Queensland's annual population growth has increased from 49,000 a year ago to 76,000 this year.
This, of course, is a big turn-around.

On face value, the numbers are encouraging, but the economic reality is that increasing migrant numbers will not create a significant increase in housing demand for the short term.

When looking at the Australia-wide picture, two-thirds of the recent population increase is due to an increase in overseas migration.

Most of our overseas migrants come from New Zealand (30,000 a year, up from 18,000 two years before); followed by China (20,000 a year, little changed); 25,000 from Europe (up 10,000 over the past 12 months alone) and 15,000 from India (up 5000 on 2010 figures).

Some in the property industry believe the nation's household sizes will remain steady in the face of rises in population.

But the reality is that for many of our newcomers, circumstances will mean that they will share space, occupying every room in a house and probably renting rather than buying.

The face of Queensland is also changing.

Ten years ago, the state's population growth comprised 26 per cent natural increase (more births than deaths); 31 per cent net overseas and 43 per cent net interstate migration.

Five years ago, it was 32 per cent natural increase; 41 per cent net overseas migration and 27 per cent net interstate.

This year: 42 per cent natural increase; 45 per cent from overseas and just 13 per cent interstate.

In the past, much of Queensland's population growth came from interstate; many new arrivals under 40, with the vast majority looking to make a new start.

They sold up in Sydney or Melbourne, moved here and bought a house (often new - as they were making a new start after all) and often started their own businesses.

They had money in their pockets.

So times have changed, and this more immediate stimulatory impact does not apply to today.
An increase in housing demand will certainly follow on from the lift in population growth, but it might take years to eventuate and could have less economic stimulus than past multipliers would suggest.
The housing industry must respond to the realities of today, if we are to see the industry working once again.

* Michael Matusik is a commentator on the developer and real estate investment industry. See more at www.matusik.com.au

news.com.au 13 Jan 2013

Australian politicians are in the process of importing more slave labour into Australia,under the 'refugee' banner.

Melbourne is dumped with approximately 50,000 migrants per year from shadowy backgrounds, many with no paperwork, dodgy past, and criminal intentions.

The so called 'population growth' is controlled/regulated by politicians.