In September, AMP chief economist, Shane Oliver, told the AFR Housing Summit that Australia’s housing shortage could only be solved if net overseas migration (NOM) is lowered to a level commensurate with the nation’s ability to supply new housing:
“If you’ve got more demand in terms of people that need a home and not enough supply, then prices will go up. So the way around that is to peg the level of immigration you have each year to the ability of the housing market to supply new homes”.
Shane Oliver subsequently published a research note detailing how Australia’s housing shortage is being caused by high levels of NOM and why immigration levels must be reduced if the country is to have any chance of resolving the issue:
