Canada and New Zealand cut migration sharply and saw modest rent falls – but only alongside weaker labour markets and stronger housing supply. The lesson for Australia is not imitation, but stability.
There has been much discussion in the media (and amongst some politicians) that we should copy Canada and NZ on immigration policy after those two nations brought down net migration very significantly and experienced some falls in house rents. The Editor of the Australian Financial Review has explicitly recommended that Australia follow Canada’s lead. It’s therefore worth examining what has happened in those two nations.