Population growth driving greater housing demand, analysis finds

increase by 1.6 per cent. This marks the largest increase in raw number terms since September 2017 and also the third quarter in a row to see the rise in annual population figures increase over the previous quarter.

Overseas migration was responsible for the most amount of population growth, followed by natural growth, according to the data.

CoreLogic research analyst Cameron Kusher noted this year’s natural growth of 156,337 is at the highest level since March 2015 and 8.5 per cent more than the year prior. Meanwhile, net overseas migration is at 248,446 people and sits at its highest level since September 2017.

Mr Kusher pointed out that population growth is strongest in NSW and Victoria.

“Population increase in NSW is primarily driven by natural increase and net overseas migration, accounting for 37.0 per cent of national net overseas migration,” Mr Kusher said.

“Vic has seen 34.6 per cent on net overseas migration nationally over the past year and has also recorded the second highest rate of net interstate migration (behind Qld).

“Over the coming quarters, it is expected that similar trends will continue with strong population increases in NSW and Vic driven by overseas migration and strong rates of net interstate migration for Vic and Qld.”

In addition, Mr Kusher said Victoria, Queensland, Tasmania and the ACT are all seeing positive rates of net interstate migration, with more people arriving from interstate than leaving.

All of this growth, he noted, is generating more housing demand.

“High levels of migration mean increased demand for housing, which is a factor that should assist in putting a floor under the recent declines in dwelling values (particularly in Sydney and Melbourne),” Mr Kusher said.

“Furthermore, increasing populations should also assist in the absorption of the large volume of apartments under construction in Sydney and Melbourne.”