As immigration falls in Australia due to the pandemic, housing sector feels the pain

Scott Morrison is being urged to extend the HomeBuilder program after new research found the coronavirus pandemic could savagely cut housing demand over the next three years.

Source: Moment RF

A fall in migrants during the pandemic is causing a sharp drop in housing demand, with the sector urging the government to create a migration plan and extend HomeBuilder incentives.

The Property Council also wants the government to introduce a new migration plan.

Population growth could fall by 214,000 between 2019 and 2021, a decline only surpassed by World War I and the unwinding of the 1971 baby boom.

This is the result of international border closures that have effectively shut down overseas migration, which accounts for roughly 60 per cent of population growth.

As a consequence, housing demand could be cut by between 129,000 and 232,000 dwellings.