Coalition proposes drastic migration cut to ease housing crisis

A Coalition frontbencher has proposed a drastic reduction to migration to help ease housing pressures, but an expert has warned there is more to the story.

Shadow housing minister Andrew Bragg on Wednesday proposed cutting net overseas migration to less than 180,000 people per year – about 45,000 fewer than Labor’s target.

In a National Press Club address, he argued net overseas migration has risen by 1.5 million people but housing supply increased by only 550,000 since Labor came into office in 2022.

“This has created a shortfall of some 130,000 dwellings, which are needed to house at least 350,000 persons,” he said.

Bragg said the drop in migration would be achieved through increasing the skilled share of the permanent migration intake and “modest” reductions in international students, working holidaymakers and post-study work visas.

“I grew up in north Victoria and I used to pick fruit on orchards, and I know how reliant the orchards are on getting access to foreign labour,” he said.

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“So of course we take these things seriously, but I think the main point is we want to up the level of skill that we’re getting, and it’s more builders, fewer baristas.”

Bragg admitted his figure of 180,000 is not official Coalition policy, but a way to “keep the debate moving”.

“We haven’t finalised our complete policy suite, as you know. But I thought it was important to move the debate on towards, where the numbers are probably going to hit,” he said.

“And we will be backing that up with more to say later.”

ANU economic and social associate professor Ben Phillips said the population has been growing for two decades and is only a small factor contributing to housing pressures.

Instead, he believes historically low interest rates and the view of home ownership as an investment have pushed up prices over the long term.

“We’ve had strong population growth through a very, very long time now, and it’s all of a sudden become a political issue,” he said.

“So we’re blaming migrants for high house prices. It seems a bit rich to me, and more a matter of political convenience than reality.”

Migration has become a dominant talking point in Canberra amid One Nation’s rise in popularity.

Home Affairs Minister Tony Burke’s intention to announce reforms to reduce migration numbers at his own National Press Club address last week revealed Labor’s concerns it would not meet its net overseas migration target of 225,000 people.

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The latest net overseas migration figures came in at 301,000.

His address, however, was abruptly postponed as the matter was contentious within the cabinet.

Meanwhile, Pauline Hanson wants to deport 75,000 migrants who she claims are overstaying their visas and cap visas at 130,000 people per year.

She hit back against accusations she is merely pointing out grievances without having any solutions, saying both the Coalition and Labor are changing their tune on the housing market and migration.

“The things that I put up there, that I’ve brought the Coalition and the government kicking and screaming to listen to the Australian people,” she told reporters on Wednesday.

“The Voice, I was the first one to come out against. Net zero was another one. Where’s the Coalition landed on that now?

“Even the housing market, immigration. They’re both now pulling back their triggers.”