The federal government is hoping its planned cap on international students will slow-down net overseas migration. As the ABC’s explains, coupled with the construction of more homes, it is a policy that is aiming to address concerns about housing affordability.
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00:00The new cap on international students is mostly a housing policy.
00:06It's part of the plan to cut net overseas migration from last year's blowout of 547,000
00:12to 235,000 over the next four years, as shown here.
00:17The idea is that 235,000 migrants plus natural increase equals about 350,000 people needing
00:23a place to live.
00:25At 2.4 people per dwelling, that means 145,000 houses and flats, and completions are running
00:31at about 42,000 per quarter, or 168,000 per year.
00:36So that's fine.
00:37Putting to one side the fact that it's going to take four years to get there, will it work?
00:43Well immigration statistics are a nightmare, but to cut a complicated story short, it looks
00:47like there'll have to be other cuts than international students, or more people will have to leave
00:52for them to get to 235,000 net migration.
00:56But at least they're having a go at dealing with demand, although of course there are
01:00a couple of elephants still in the room.
01:02As for supply, Victoria and New South Wales at least are trying to get more houses and
01:06flats built by raising height limits around train stations and giving councils housing
01:11targets.
01:12And densification does work.
01:14Look at this, Melbourne and Sydney have densified with more blocks of apartments and plan to
01:20keep at it, while Perth and Adelaide have not.
01:23Perth and Adelaide prices have taken off.
01:27So a good start has been made, but it took 25 years to achieve this housing crisis.
01:31Undoing it will take long-term, consistent political stamina, and that's about as rare
01:37as a $500,000 family home.