Australia aims to reduce immigration to address housing crisis

The Australian government, led by Prime Minister Anthony Albanese, is addressing the ongoing housing crisis. The Labor party acknowledges that both renters and first-time home buyers are facing challenges. In response, the government plans to cut immigration levels in half from the recent record highs. Upcoming forecasts from the Treasury project that around 260,000 new migrants will arrive in 2025-26. This is a significant decrease from nearly 550,000 in 2023. The government also expects more people will leave Australia as their visas expire. Housing Minister Clare O'Neil stressed the importance of increasing housing supply. The government has allocated $33 billion to build 1.2 million new homes by 2029. O'Neil stated, “The key to more affordable housing is boosting supply.” She highlighted that the housing crisis has made life difficult for many renters and aspiring homeowners. In his budget address, Treasurer Jim emphasized the need to improve home ownership rates, especially for young Australians. He explained that the $33 billion plan aims to make homes more affordable. New price caps have been introduced for the government's Help To Buy Scheme, which helps buyers with equity in their home purchases. For example, Sydney's cap is set at $1.3 million, while limits for other cities are set according to local market conditions. This cap aims to mirror median house prices in these areas.