We shut our borders suddenly and unexpectedly for two years, going from a long-run rate of over 1% net immigration to negative overnight. Meanwhile, we kept development approval and construction going largely unperturbed.
Our housing market responded with a two year long bull-run.
As convenient as it is to blame immigrants, I don't think it's true.
There were other factors at play. Many professionals transitioned to a permanent work-from-home arrangement, which caused a large interest in more affordable property outside of the major cities. Since things have gone back to the 'old normal' the rental prices in Sydney have gone absolutely insane. The average price for even mediocre apartments close to the city is around $1000 a week.
I would guess that corresponds with printing a lot of money for COVID, so everyone with capital stuck it into property since they couldn't wait to get out of cash and lots of businesses couldn't operate.
2 years can't make up for decades of being behind schedule. Throw in low interest rate and government's throwing money everywhere it'd be much more shocking if anything else happened.
Rents tell the supply demand story. Renting means you need somewhere to live. Buying can mean many things: need somewhere to live, investment. Also prices can go up due to constrained number of transactions. People ain’t selling factors.
Are you suggesting that immigration has had no effect on the price of dwellings in the developed world, and that two years of low immigration during a period of unprecedented economic slowdown and intense inflation was enough to prove that?
We shut our borders suddenly and unexpectedly for two years, going from a long-run rate of over 1% net immigration to negative overnight. Meanwhile, we kept development approval and construction going largely unperturbed.
Our housing market responded with a two year long bull-run.
As convenient as it is to blame immigrants, I don't think it's true.