Crisis or Jackpot? The Truth About Australia's Housing Boom. [APS098]

Have you ever wondered why Australian house prices and rents have shot up like a rocket, while politicians promise to “fix the housing crisis” on one hand, and quietly push prices even higher on the other? For many, Australia was supposed to be a dream paradise. But after the government’s sudden reversal on student visa and immigration policy, that dream has drifted even further out of reach.

Just last week, fresh data showed immigration numbers hitting a record high. This isn’t a coincidence—it’s a calculated move in a long-running game. Today, we’ll uncover the secret behind this so-called “housing crisis” and how the Australian government manipulates the flow of migrants and international students to quietly reshape the entire housing market—while securing its own political power.

If you want to know why the property investors will come out as winners in this game, while everyday workers stay stuck—unable to buy, unable to rent? Then you need to keep watching. You’ll see this isn’t just a numbers game. It’s tied to elections, the biggest wealth transfer of this century, and ultimately, your own wallet. Those who don’t understand what’s happening will be left behind, because nothing stops this train.

Australia’s Mass Immigration Plan

During the 2022 election campaign, Labour promised that if they won, they would cut immigration.

But the moment they took office, in September that same year, they convened the Jobs & Skills Summit. And wouldn’t you know it—the room was filled with “Big Australia” advocates. The consensus? The first step to building a “Big Australia” is more people. The result was that Labour’s immigration policy did a complete 180. They pushed migration numbers to unprecedented highs. Before the election, they criticised the Coalition for lifting the cap to 160,000. Once in power, they raised it to 195,000.

The rest is history. Net overseas migration exploded. In just the second year, more than 550,000 migrants arrived in Australia. That surge directly drove house prices and rents through the roof—what the media now calls a housing market crisis. Median annual rents jumped by $10,000 compared to pre-pandemic levels.

If you follow Australian news, you might remember that from late last year into early this year, media outlets, forums, industry bodies, and politicians all pointed the finger at immigration for high housing prices and tight rentals. Both Labour and the Liberals rolled out plans to slash migrant and student numbers, each trying to win support by cutting more than the other.

However, by the time the 2025 election arrived, Labour had shifted its stance. Instead of reducing migrant numbers, they talked about “optimising” them—raising skill requirements, hiking student visa fees—while keeping overall numbers steady.

Then, just last week, ABS data on net permanent migration and long-term arrivals told a different story: migration is rising again. In the first half of 2025, the figure hit 279,000—up 5% on 2024 and 64% higher than 2019, before the pandemic. From 2024 to 2025, the number reached 460,000, with monthly year-on-year growth still climbing. So while you thought migration was falling, reality shows it’s surging—and that explains why housing is getting more expensive and rentals harder to find. In this context, the Labour government has once again reversed its immigration policy, and numbers could soon enter another rapid growth phase.

A Big Push for International Students

Earlier this month, despite soaring home prices, unaffordable rents, rental property shortages, and falling living standards, the Prime Minister announced an increase in international student numbers. In 2026, student visa grants will rise by 10%, admitting 295,000 students. Remember—this policy was never mentioned during the campaign. In their previous term, Labour even claimed they would cut migration back to pre-pandemic levels. Clearly, that was said to calm voters at the time.

Back then, Labour also sought to legislate a cap on international students—a move that never passed Parliament. Now, less than a year later, they’ve completely reversed course.

And it’s not just about letting in more students—they’ve also lowered the entry bar. Applicants can now choose from nine different English tests, and the required scores have been reduced.

So why such a drastic reversal in immigration policy? Is boosting student numbers really just about bringing in more money for Australia? Or is there something deeper at play—something directly tied to where these migrants are coming from?

Australia’s Strong Push for South Asian Migration

Why is Australia’s Labour Party so focused on bringing in more South Asian migrants? Let’s start with some background. According to a 2022 survey by the Carnegie Endowment for International Peace, Indian-Australians overwhelmingly support Labour over the Coalition. In the 2022 federal election, 58% of Indian-Australian voters backed Labour, while only 34% supported the Coalition. Chinese-Australians also leaned heavily toward Labour. In electorates where the Chinese community made up more than 10% of the population, Labour virtually swept the board.

Soon after the 2025 election, Labour came under fire. Targeting key swing seats, the government rushed through 12,500 citizenship approvals. Why? You don’t need to think too hard—most of these new citizens were from India or China, and the majority supported Labour. Letting them in was one thing; getting their votes in return was almost guaranteed.

During the last term, Labour signed two key agreements with India—one on migration, the other on mutual skills recognition. Together, they cleared the way for more Indian migrants and students to come to Australia.

With Indian-Australians largely voting Labour, and India now being Australia’s largest source of migrants, the government has every reason to expand migration—especially from India.

There’s another interesting detail: in 2024, Indian migrants in Australia accounted for the largest share of all money sent overseas from here. And total outward remittances are closely tied to the number of international students. According to the 2024 Money Transfer industry report, India ranked first among remittance destinations, with China second. The pattern is simple: students come to Australia, pay tuition, spend on living costs, then work part-time, or maybe full-time illegally. But much of the money they earn isn’t spent here—it’s sent back home.

So, when you think about it, how much real economic growth does increasing student numbers actually bring to Australia?

With Indian student numbers surging and migration from India climbing sharply, most can’t vote yet—but give it a few years, and when they can, who do you think they’ll choose? If current trends hold, the next election could easily see Labour in power again.

And that leads to the bigger question—what will this chain of events, and the trends already in motion, mean for Australia’s property market?

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1.2 Million Homes? The Gap Just Got Even Wider

Alongside the government’s push to bring in more international students, something else happened. In May this year, the National Housing Supply & Affordability Council (NHSAC) warned that the government’s five-year target of building 1.2 million homes would fall short by 262,000.

But according to the latest forecast—given that supply hasn’t improved while demand is rising—by the end of the five-year period, we won’t just be 262,000 homes short of target. The gap between supply and actual demand will widen by another 79,000.

The Council report specifically warned that higher immigration and supply bottlenecks will keep squeezing rental options, driving rents higher, fuelling homelessness, and overcrowding. It even pointed out that if population growth slowed by just 15%, there would be a surplus of 40,000 homes within five years.

If you read carefully, the Council has already spelled out the solution: cut migration so that it stays below the rate of new housing supply and infrastructure upgrades. That’s it—simple.

The Government’s Approach

Meanwhile, just before this week’s Treasury Economic Reform Roundtable, a draft report—leaked to ABC—revealed Treasury’s advice: halt updates to the National Construction Code for ten years to boost housing supply. Why? Because higher building standards slow down construction. They also suggested using AI to speed up approvals—but offered nothing on increasing the workforce in construction.

The reality? Australia’s building industry is already at full capacity. Faster approvals won’t build more homes. The backlog is growing—like paying for a car but being told you’ll wait a year to get it. With limited capacity, buyers queue up, and prices rise. Housing is no different.

Which brings us back to the same conclusion: Australia’s housing and rental crisis is man-made. Cut migration by 15%, and within five years the pressure would ease. But will the future follow that script?

Where the Housing Market Is Headed

By now, you should see the trend. The current government will use “helping universities earn more money” as an excuse to boost student numbers. Once the precedent is set, student visas will grow further, followed by more migration. But much of the income students and migrants earn in Australia is sent back to families overseas, limiting the benefit to Australia’s economic output. That’s not the main point, though. The majority of these students and migrants come from China and India, and once they become citizens, most will vote for Labour—because it makes it easier to bring over relatives and access more welfare.

The problem? Many are not high-skill migrants and can’t contribute enough to the economy. The result is more people, higher GDP, but lower productivity, falling GDP per capita, and declining real wages. Add to that: housing supply stuck, demand accelerating. The only outcome in the coming years—higher prices and higher rents.

Labour will secure votes by expanding welfare, giving workers better conditions, higher nominal pay, and fewer working hours, while increasing migration. That’s why I believe the next federal government will likely still be Labour. To offset lower productivity and reduced per-capita output, taxes will rise across the board.

This benefits those who want to work less. But for hardworking Australians hoping to escape the rat race—it’s a dead end. Migrants will vote for Labour while buying property and building wealth. Many Australians can’t buy a home, or oppose investing in property.

I understand why multi-generation Australians hate the current immigration policy, the housing market, and migrants themselves. But reality is what it is—you can’t beat the system. The smartest move is to join it.

The Only Path to Wealth in Australia

Australia’s most efficient wealth creators are: Mining. Education. Property.

And for ordinary people, property is the only real way up. Work hard, save more, cut spending, maximise tax deductions, and invest in real estate. That’s the only ladder to a higher class.

I know plenty of losers online say I'm the reason they can't afford a home. That's not true. The whole system is rigged. I just found a way to play the system. With the correct mindset and action, you can do it too. Australia’s housing market is built to rise in the long run—short-term dips, long-term growth. It's just how it is. If you can't beat the system, join it, and ignore what the losers say. They get excited when typing on the keyboard, you get rich. Keep away from the narrow-minded people.

Their key trait—they can’t empathise. You speak logic, they hear emotion. You talk structure, they think you’re looking down on them. You state facts, they think you’re showing off. Talking to them is exhausting because you’re on different channels. You reason, they play the emotional card. You analyse cause and effect, they accuse you of being cold. Eventually, you give up—realising you’re trying to awaken a mind with no self-reflection. It’s too much. They can’t separate fact from opinion. For them, emotion always outweighs fact. Position comes before logic. In their world, there are no objective truths—only “what I believe” and “who I dislike.” You can’t change them, guide them, or reason with them. So how do you protect your energy? Avoid them. Don’t interfere. Don’t educate. Let them make their mistakes. Sometimes, letting cause and effect play out is the greatest kindness.

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