A recent report released by economic research firm Commsec, revealed that Australia is currently witnessing its biggest population boom in history, as a record 253,415 migrants arrived on our shores in 2008. This translates to almost 700 new arrivals every day.  

Additionally, we are currently experiencing a baby boom, with 296,700 babies born during 2008, representing the highest rate of births reported since quarterly records began 27 years ago.

Leading this population explosion on a state by state basis are Victoria, where the population has grown at its fastest rate since the mid-1960’s and Western Australia, which recorded its fastest population growth in almost 40 years, followed by New South Wales, with the greatest growth in close to 20 years. In fact all states and territories are seeing a significant acceleration in the increase of new residents, with the only exception being the Northern Territory.

Not surprisingly, with this influx of new migrants and babies, our overall population grew by a whopping 1.91 per cent (406,083 new residents) in 2008; the most rapid rate of growth that has occurred in almost 40 years and the fastest population growth out of all developed nations, including the US and UK.

This means that not only can we boast the fastest economic growth of all developed nations in the world, but also it would seem, the most attractive place to call home for migrants seeking residency abroad. Some have suggested that our burgeoning population may be one reason Australia’s economy continues to perform relatively well in light of the global economic recession.

Such a rapid increase in new residents will continue to fuel our economy by boosting the skilled labour supply, as well as the need to create new supporting infrastructure (more Australians means the need for more roads, schools, hospitals and yes, homes) and increasing the amount of people spending money locally on goods and services.

For property investors of course, this population explosion provides assurance that our capital city housing markets will continue to hold their own into the future. I specifically say “capital city housing markets” because the majority of new migrants choose to make their homes in or around our major CBD locations, as this is logically where the most supporting infrastructure and employment opportunities are to be found.

This latest boom really highlights the pressing need for a significant increase in the building of new residential accommodation over the coming years in order to address Australia’s ongoing housing supply crisis.

It is no secret that one of the reasons our housing markets have held steady and even shown a slight upward momentum in recent months, is that compared to the US (where there are too many homes and not enough new residents entering the country), Australia has experienced enormous population growth and simply does not have enough homes to cope with all of these new people.

In other words, it all comes back to supply and demand. We have tonnes of demand as our population skyrockets, but cannot keep up when it comes to building enough housing for everyone to buy and rent.

Furthermore, off the back of a healthy economy, we often see a very robust and even booming housing market. And let’s face it; if our population growth continues at this breakneck pace, our economy will benefit significantly into the future, with an expected increase in consumer spending and hence, the bottom line of local businesses and retailers.  

So as I polish the crystal ball and gaze into the coming years to see where our housing markets might be heading, I can’t help but be optimistic in light of this population growth data. A record increase in new residents seeking accommodation, a housing shortage already putting upward pressure on property prices and an increase in consumer spending and confidence all lead me to one conclusion – possibly the biggest property boom of our time. Are you ready for it?

To learn more about where our inner city property markets are heading and what all of this means for investors and home buyers, please join us at a free property briefing in Sydney, Melbourne, Brisbane or Perth. Click here now to learn more and reserve your place at one of these highly informative sessions today.    

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