Migration fears remain in wake of quarterly update
Overseas migration is still above the nation’s 10-year average, Australian Bureau of Statistics figures show, sparking warnings that demand for housing will continue to outpace supply.
Overseas migration is still well above the nation’s 10-year average, Australian Bureau of Statistics figures show, sparking warnings that demand for housing will continue to outpace supply.
The ABS data revealed that Australia’s population grew by 144,238 people in the March quarter and 423,400, or 1.6 per cent, in the past 12 months.
Bringing the country’s total population to 27.5 million, the growth accounted for a natural increase of 107,400 and net overseas migration of 315,900.
ABS demography head Beidar Cho said migration was down compared to the previous 12 months: “We saw 315,900 people added to our population from overseas migration from March 2024 to March 2025. This compares with 493,800 people in the previous 12 months.”
However, the Housing Industry Association raised concern with migration remaining well above the country’s 10-year average. “While (the data) represents a continued moderation from earlier inflows, it is still well above the pre-pandemic decade average of less than 220,000,” HIA chief economist Tim Reardon said.
“Moreover, leading indicators have been suggesting that Australian population growth, on the back of overseas migration, is likely to remain elevated compared to historical averages.”
Mr Reardon said the home building industry needed “stable and reliable population settings, not the bust and boom settings seen over the last five years”.
“The Australian government creates housing demand through immigration, while state and local governments are responsible for housing supply and the price of homes reflects their ability to work co-operatively,” he said.
“The goal of stable and reliable migration pathways has not been balanced with the removal of restrictions on new home building necessary to meet demand.”
The Australian Industry Group said latest ABS figures showed a “normalisation” in the country’s population growth.
“Official data … shows that Australia’s demographic disruptions caused by the pandemic have normalised, pointing to the importance of a skills-focused migration program,” Ai Group chief executive Innes Willox said.
“There are some anxieties in the community regarding our ability to supply needed housing and public infrastructure for our population. These are entirely understandable given the fall in our home building rates, the delays and cost blowouts afflicting many infrastructure projects, and the mounting red tape tying up delivery of both.
“But the demographic data shows the problem lies with supply, not demand. Australia’s population today is on the same track it has been for over a decade. We have simply failed to build at the rate our long-term demography requires.”
The debate over migration figures follows Home Affairs Minister Tony Burke capping the nation’s 2025-25 permanent migration intake at 185,000, keeping with the levels enforced for 2024-25.
Sussan Ley on Thursday said it was clear immigration was still “too high”. “We need to develop an immigration policy that looks not just at this headline number, because there’s also the numbers that are coming out on skilled visas, very important to parts of Australian industry, international students, and so on,” the Opposition Leader said.
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