The article from Macrobusiness.com.au (dated February 26, 2026) by Leith van Onselen sharply criticizes Prime Minister Anthony Albanese's refusal to reduce immigration levels, arguing that this policy locks in perpetual housing shortages in Australia. The core claim is that mass immigration under the Albanese government drives population growth far faster than housing can be supplied, creating an endless cycle of shortages, soaring rents, and affordability crises.
The Central Argument: Immigration Outpaces Housing Supply
Australia has experienced historically high net overseas migration (NOM) since late 2019, averaging around 266,000 people per year through mid-2025 — even during and after COVID border restrictions. This has fuelled rapid population growth, with critics estimating that over 1.3 million net arrivals occurred under Labor since 2022.
Meanwhile, housing construction has not kept up. Government bodies like the National Housing Supply and Affordability Council (NHSAC) forecast the housing shortage worsening by 79,000 dwellings over the five years to 2028-29, based on current migration projections from the Centre for Population. A cumulative shortfall of 200,000–300,000 homes already exists (per estimates like those from AMP chief economist Dr. Shane Oliver). NHSAC's own sensitivity analysis shows that slowing population growth by just 15% (via lower immigration) would cut the deficit by around 40,000 dwellings, as supply would better match reduced demand.
The article highlights Albanese's explicit statement (in a February 2026 Sky News interview) that the government has "no intention to lower immigration." This is portrayed as a deliberate commitment to ongoing high inflows, ignoring evidence that migration is a key driver of demand pressure.
Evidence of the Impact on Housing and Rents
Advertised rents have risen 47% since late 2019, adding roughly $11,400 annually to renting costs (per Cotality data).
Rental markets remain strained, with shortages contributing to record homelessness and young Australians abandoning home ownership dreams.
Forecasts from KPMG and NHSAC indicate shortages persisting or worsening under current policies.
The piece contrasts this with Canada's approach. In 2024–2025, Canada implemented sharp cuts to permanent residents, international students, temporary workers, and asylum seekers, leading to a population decline of 76,000 in Q3 2025 (the first non-pandemic drop in history). This eased rental pressures: asking rents fell for 16 straight months, down 6.6% from their 2024 peak, saving tenants about $1,740 per year on average, and pushing affordability to a six-year high.
Australia's failure to follow suit — despite similar post-pandemic migration surges — is seen as policy stubbornness, ensuring "endless" shortages rather than relief.
In essence, the argument boils down to a simple mismatch: mass immigration under Albanese sustains rapid population growth that housing supply — hampered by planning delays, labour shortages, and other factors cannot match. Without meaningful curbs on inflows (as Canada did), the result is prolonged shortages, higher rents, and entrenched unaffordability. This view frames current policy not as a temporary post-COVID adjustment, but as a long-term commitment to a "Big Australia" that prioritises growth over liveability for existing residents.
In short, join One Nation, time to sink the evil Labor "Big Australia" Party!
https://www.macrobusiness.com.au/2026/02/albanese-commits-to-endless-housing-shortages/