Australia is set to experience its biggest two-year population surge in history, with an extra 650,000 migrants expected to move here this financial year.
The return of international students and working backpackers is set to boost the ranks considerably.
While the reopening of borders will also improve Australia’s economy it will put further pressure on the extremely tight rental market.
According to Australia Bureau of Statistics figures, in the year to September 2022, 304,000 overseas migrants moved to Australia, with two-thirds of those moving to NSW and Victoria.
It is hoped the increased spending which comes with the boost in population will help lift consumer spending figures and ease labour shortages.
According to the five-yearly review of productivity by the Productivity Commission, skilled migration needs to improve to produce a greater economic result.
While the return of international students is promising it is still below 2019 levels.
Department of Home Affairs figures show there were 110,000 more student visa holders in Australia in the 12 months to the end of February.
Before the Covid pandemic hit, Australia’s population was expected to grow by 1.2 million in the five years to June 2024.
Even with the boosted arrivals this year, that figure has been revised down to 950,000 people.
The annual natural increase in population is about 123,000 people. That coupled with overseas arrivals has Australia on track to hit a population of nearly 27 million by June 2024.