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Migration spike puts housing in the spotlight

Fresh ABS figures show Australia welcomed more than 110,000 new arrivals in the March quarter of 2025, double the pre-COVID average. With migration driving 76 per cent of population growth, pressure on housing supply and affordability is again in the spotlight.

Australiaโ€™s migration program is facing renewed scrutiny after fresh figures revealed intake levels remain far above pre-pandemic averages, intensifying concerns about housing affordability and infrastructure strain.

The Australian Bureau of Statisticsโ€™ (ABS) National State and Territory Population data for the first quarter of 2025, released today, shows Net Overseas Migration (NOM) for the March quarter was 110,062, the equivalent of 1,223 arrivals each day between January and March.

NOM accounted for 76 per cent of Australiaโ€™s population growth during the quarter, with the intake more than double the pre-pandemic quarterly average of 55,036, recorded between March 2010 and March 2020.

Daniel Wild, Deputy Executive Director at the Institute of Public Affairs (IPA), said the figures highlight government failings.

โ€œThe latest ABS data shows the federal government has completely failed to bring Australiaโ€™s migration program back to pre-pandemic levels, with Net Overseas Migration in the March quarter twice the pre-covid decade average,โ€ Mr Wild said.

He noted that although migration has eased slightly compared with post-pandemic highs, it remains well above historic levels.

โ€œThe latest Net Overseas Migration data confirms that, despite recent moderation to the intake from unprecedented levels, the size of the intake remains highly elevated on pre-pandemic levels.

โ€œWhile net arrivals have moderated slightly, Australiaโ€™s migration program remains at historic levels.โ€

Mr Wild argued that elevated migration is directly linked to worsening housing affordability, alongside broader economic and social challenges.

โ€œA much harder and faster reduction to the Net Overseas Migration intake is required to restore confidence in Australiaโ€™s migration program, which is making Australians poorer, housing unaffordable, and our society more divided,โ€ he said.

โ€œOnce again the latest data shows that the unprecedented surge of Australiaโ€™s population, underpinned by mass migration, continues, with mainstream Australians paying the price.โ€

While acknowledging migrationโ€™s long-standing role in shaping the nation, Mr Wild said the governmentโ€™s approach was unsustainable.

โ€œAustralia is a tolerant and welcoming country, and migration has and will always be a part of our national story. But Australiaโ€™s migration program needs to be properly planned for, sustainable, and have the support of the community,โ€ he said.

โ€œThe elevated level of migration is no longer a post-pandemic catch up, but the new normal under the Albanese government. It is something that Australia simply cannot afford โ€“ with housing, infrastructure, and services unable to keep up.โ€

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Catherine Nikas-Boulos

Catherine Nikas-Boulos is the Digital Editor at Elite Agent and has spent the last 20 years covering (and coveting) real estate around the country.