How Anthony Albanese’s authorities plans to resolve the housing disaster – as forecasts present immigrants will proceed to flood in

Labor has admitted renters and first-home buyers are struggling – and is promising immigration levels will halve from recent record highs.

The Treasury Budget papers forecast 260,000 new overseas migrants, on a net basis, would be moving to Australia in 2025-26.

This would be half the record-high levels approaching 550,000 in late 2023, leading to a housing crisis as permanent and long-term arrivals soared.

But net overseas migration levels were still above 445,000 during the last financial year, and Treasury has had a track record of underestimating population growth.

Nonetheless, Treasury predicted net overseas migration levels would fall as more people left Australia for good.

‘Departures are expected to pick up from recent sustained lows as more people who arrived after the pandemic near the expiry of their visa,’ it said.

This promise was made despite a record 85,160 people leaving Australia for good in January, which still saw net overseas migration levels climb by 432,400 over the year.

A flood of international students is causing rental markets to tighten. 

Labor has admitted renters and first-home buyers are struggling – and is promising immigration levels will halve from recent record highs (pictured is a Bondi rent queue in Sydney)

In a Budget announcement, Housing Minister Clare O’Neil admitted the housing crisis was squeezing renters and aspiring first-home buyers, as $33billion was set aside to fulfill Labor’s plan to build 1.2million homes over the five years to 2029.

‘We know renters and first home buyers are struggling. The key to more affordable housing is boosting supply. For a generation, we have not built enough homes,’ she said.

In his Budget speech, Treasurer Jim vowed to focus on tackling poor rates of home ownership among the young.

‘We are tackling the housing shortage from every responsible angle – making home ownership more affordable for young Australians and young families in particular,’ he said.

‘Our $33billion plan will help build 1.2million new homes before the decade is out.’

The Budget announced new price caps for Labor’s Help To Buy Scheme, where the government takes an equity stake in home purchases.

Sydney will have a $1.3million limit, which is well below the city’s median house price of $1.5million.

Melbourne’s limit would be at $950,000 compared with $1million for Brisbane – with both levels near the mid-point house prices in those cities.

Adelaide’s cap is at $900,000 compared with $850,000 for Perth, $700,000 for Hobart, $1million for Canberra and $600,000 for the Northern Territory.

The Treasury Budget papers forecast 260,000 new overseas migrants, on a net basis, would be moving to Australia in 2025-26 (pictured is Prime Minister Anthony Albanese)