Immigration Boosts House Prices

 

Migrants moving to capital cities and major regional
centres are helping to boost house prices by as
much as $6,500 each year, shows a university study.

The study titled The Impact of Immigration on
Housing Prices in Australia shows that in cities
where the new migrant population grew by 1% each
year, house prices also rose by 0.9%.

“House prices would have been around 1.4% lower
per annum, and units 0.8% lower, if there had been
no immigration [from 2006 to 2016],” said the report
authors, senior lecturer at Monash Business School
Daniel Melser, and RMIT University student Morteza
Moallemi,

“Interestingly, the effect of immigrants on different
property types is different – there is a bigger impact
on houses than units or apartments,” Melser says.
“Chinese and Indian immigrants have high rates of
home ownership.”

Economist Esther Rajadurai says immigration brings
other positives to the economy, such as spending
which drives economic growth and government
revenue. This in turn helps to counteract slow growth
and depressed wages.