The Impact of Record Migration and a Tight Housing Market on Real Estate in Brisbane

For Brisbane and Greater Queensland, 2021 had been a record year for internal migration to the state. This influx of people has exacerbated competition for housing, pushing property values up 38.1% since March 2020 and rents 23.0% higher in the same period. With these rising housing costs, low-income renters are particularly vulnerable to experiencing homelessness due to the tight housing market.

Boom then.. Bust?

The factors driving this swing home values over the past 18 months, including record internal migration and a tight housing market across Australia. Increased demand for rental properties is pushing up rental prices as well as property values; however, there isn’t enough supply to meet this increased demand which further drives up prices and leads to a tighter housing market overall. Furthermore, with more people moving into Queensland than ever before, competition for available properties is fierce which makes it difficult for those on low incomes or with less financial resources to secure secure long-term accommodation or purchase their own property.

Impact on Low Income Renters

Low-income renters are particularly vulnerable when faced with rising housing costs due to their limited financial resources and lack of secure long-term accommodation options available to them due to competition. According to AHURI research, a tight housing market is one of many factors that increase the risk of losing secure housing and can often lead to homelessness if not addressed properly by local governments and other organizations who have access resources that could offer relief such as emergency accommodation support services and short-term rent assistance.

Record internal migration during 2021 combined with a tight housing market has had an impact on real estate across Australia over the past 12 months leading to increased home values making it difficult for those on lower incomes. It is therefore essential that governments provide necessary services such as emergency accommodation support services as well as short term rent assistance packages where possible so that individuals affected by these issues can be adequately supported. Local governments have an important role to play here in helping create better outcomes for those most impacted by increasing competition within our cities’ rental markets.. With proper management from local councils we can ensure that no one falls through the cracks when it comes finding safe and affordable accommodations solutions during times like these when there’s high demand but limited availability.

The Great Debate: Does the Government have an Obligation to Provide Affordable Housing?

When it comes to the issue of affordable housing, opinions can be fiercely divided. On one hand, many argue that the government has a responsibility to provide a basic human need like housing for its citizens, especially during times of crisis. On the other hand, others argue that the government should not interfere with the free market and that the private sector is better equipped to handle the issue.

As housing prices continue to rise and interest rates remain low, many people find themselves struggling to afford a place to call home. This can lead to homelessness and other social problems, and some argue that the government has a responsibility to step in and provide affordable housing options for those in need. This could include building new public housing developments, offering financial assistance to low-income families, or implementing regulations that encourage private developers to build more affordable housing.

On the other hand, others argue that government intervention can lead to inefficiencies and higher costs, and that the private sector is better equipped to provide affordable housing. They argue that the free market should be allowed to function without government interference and that the government should not be responsible for providing housing.

But is there a middle ground? Can the government and the private sector work together to provide affordable housing? Many governments have already implemented policies to encourage the private sector to build more affordable housing, such as tax incentives, subsidies and zoning regulations.

Ultimately, the question of whether or not the government has an obligation to provide affordable housing is a matter of perspective. But one thing is for sure, the housing crisis is a complex issue that requires a balanced approach between government and private sector collaboration.