The Reserve Bank of Australia’s (RBA) November Statement of Monetary Policy (SoMP), released on Tuesday, stated that Australian housing prices had risen despite higher interest rates because of robust population growth (read immigration).
“Population growth over the tightening phase has contributed to increased demand for housing, which (combined with a lack of new supply) has led to strong growth in housing prices”, the RBA SoMP said.
Migration has begun to ease, and this factor, combined with Australians moving into shared housing, has started to moderate rental inflation.
