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A shortfall of housing for international students and migrants prepared to work in regional areas could exacerbate the nation\u2019s labour shortage, weighing on the economy as it faces headwinds out of China and the lagged impact of high interest rates.<\/p>\n
Research to be released on Monday shows non-traditional housing, aimed at students, working migrants and even in the aged care sector has helped reduce pressure on the struggling national housing market.<\/p>\n
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International students, such as these arriving back from China, have moved back into specialist accommodation across the country.<\/span>Credit: <\/span>Oscar Colman<\/cite><\/p>\n Asking rents are climbing by well above 10 per cent in some capital city markets while CoreLogic data this week is expected to show property values rising by up to 4 per cent over the past quarter. Some critics have blamed the rise in rents and prices on the increase in population growth, with almost 500,000 people being added to the population in 2022.<\/p>\n KPMG urban economist Terry Rawnsley said this extra half a million residents had not been solely funnelled into the private housing market, with 20 per cent moving into the so-called \u201cnon-private dwelling\u201d sector.<\/p>\n He said this sector, which includes student accommodation and pre-existing workers\u2019 dwellings in regional areas, had been pivotal in housing many of the migrants who have flooded into the country over the past 12 months.<\/p>\n \u201cWhile we have seen strong net international migration, the notion that it is all being accommodated in the private housing market is a bit of a misconception,\u201d he said.<\/p>\n Rawnsley said about 20 per cent of new arrivals had moved into existing non-private dwellings. Empty student accommodation was being filled while working holidaymakers were returning to employer-provided housing.<\/p>\n The number of people living in traditional housing, had climbed by 393,000 over the past year but was just 5 per cent above its pre-COVID level. The number of those in non-private dwellings, at about 864,000, was back to where it stood in 2018-19.<\/p>\n Rawnsley said COVID had also disrupted the number of people living in aged care homes which was picking up. This in turn was taking some pressure off the overall housing market.<\/p>\n But he cautioned that more affordable housing was needed for migrants wanting to work in Australia.<\/p>\n Specialist agriculture-related visas and working holidaymakers have moved back into employer-supplied accommodation.<\/span>Credit: <\/span>Louie Douvis<\/cite><\/p>\n \u201cWhile demand for workers remains solid, the lack of housing will be a constraint to attracting key workers into Australia,\u201d he said.<\/p>\n \u201cThe return of tourism workers, fruit pickers and other skill staff into worker accommodation in regional Australia has provided a much-needed economic boost for industries who have struggled with labour shortages since the onset of the pandemic\u201d<\/p>\n On Sunday, Chalmers said he remained upbeat about the Australian economy but warned growing risks because of events playing out in China and the lagged impact of the Reserve Bank\u2019s aggressive increases in interest rates.<\/p>\n The Reserve Bank is tipping the economy to expand by 0.9 per cent this year. At the start of the year, it was forecasting economic growth of 1.6 per cent. Financial markets and economists are increasingly confident it has finished with tightening monetary policy.<\/p>\n Since then, concerns about China have grown, with Australia\u2019s largest trade partner struggling to deal with an explosion in debt linked to its property and financial sector. There are also warning signs about the strength of China\u2019s economy after consumer prices fell sharply over recent months.<\/p>\n Chalmers said while he did not think the problems in China would lead to a recession in Australia, the combination of China with the sharp lift in interest rates would weigh on the economy.<\/p>\n \u201cA big risk to the outlook … (is) what\u2019s happening in China and the way these interest rate rises are biting in our economy here at home,\u201d he told Sky News.<\/p>\n \u201c(I) expect the Australian economy to grow but some of these challenges are growing.<\/p>\n \u201cOur economy is weakening as a consequence of what\u2019s happening in the world and what\u2019s happened with interest rates at the same time as inflation is moderating.\u201d<\/p>\n<\/p>\n