AUSTRALIAN IMMIGRATION NEWS

Australia Skills Shortage Driving Housing Demand

Monday, 23 July 2007

Demand for housing in Australia is expected to grow significantly due to the influx of migrants to Australia.

Australia's skills shortage is having a ripple effect on the Australian economy and may put pressure on the housing supply, driving prices upwards. Simply to meet the current project demand for housing, as many as 170,000 new homes need to be build this fiscal year. Building industry experts expect that this level of construction will not be met, putting pressure in existing housing supply.

Much of the demand may be due to the influx of newcomers to Australia - skilled migrants who come to Australia in order to meet the shortage of workers across the country.

The influx of migrants presents a double-edged sword. Migrants are desperately needed in order to meet vast labour and skills shortages, but also put pressure on housing supplies, driving rent and property prices higher, especially in Australia’s major urban centres.