🧨 The Great Migration Myth: Students Aren’t Stealing Your Home

As Australia grapples with rising housing costs and political finger-pointing, it’s time to dismantle the lazy narrative that blames international students for a crisis rooted in decades of policy failure, economic dependence, and deliberate underinvestment.

The analysis that follows draws from a recent conversation between leading demographer Simon Kuestenmacher and property expert Michael Yardney, whose insights offer a sharper lens on what’s really driving Australia’s migration dynamics (click here for the full video).

• Australia’s so-called “migration surge” isn’t a flood—it’s a catch-up.

  As demographer Simon Kuestenmacher has pointed out, the spike in arrivals is largely a rebound from the COVID-era border closures. In 2024, about 580,000 people arrived while 240,000 left permanently, giving us a net gain of 340,000. That’s high, but it reflects compressed demand—not an ongoing boom. Migration levels are only about 1.8% above pre-pandemic averages and are already trending back toward normal.

  
  

• International students are not driving up housing costs.

  According to both Kuestenmacher and property expert Michael Yardney, most students live in purpose-built accommodation—compact apartments near campuses that wouldn’t exist without them. They’re not competing for suburban family homes. The real housing pressure comes from construction bottlenecks, as student housing projects draw on the same trades and materials needed for broader supply.

And yet, migration is being blamed for everything from rising rents to clogged infrastructure. The loudest accusation? That international students are stealing homes. Let’s be clear: they’re not. They’re economic assets, not housing threats.

🎓 International Students: Economic Powerhouses

International students now make up roughly 35% of all new arrivals. Far from being a burden, they are a major economic engine. Each contributes around $65,000 annually to the economy—half from tuition fees, half from living expenses. At any given time, around 800,000 students are living in Australia, supporting not only universities but also local businesses, from cafes to tech firms.

While some blame students for rising rents, most live in vertical shoeboxes built specifically for them. These developments wouldn’t exist without their demand. The indirect pressure comes from construction: student housing competes for the same builders, trades, and materials needed for broader housing supply.

🛠️ A Reactive System in Need of Reform

Australia’s migration system is reactive. It welcomes those who meet eligibility criteria, without a strategic plan for the skills the country actually needs. We’re importing students without converting them into skilled workers. That’s a missed opportunity.

Kuestenmacher argues that these students—already educated to Australian standards, fluent in English, and socially integrated—are ideal candidates for permanent residency, especially in sectors like aged care, engineering, medicine, tech and trades.

Instead of treating education as a cash cow, Australia could weaponise it as a talent pipeline. Fast-track residency for graduates in critical fields. Build seamless pathways from university to employment. Use migration to solve real workforce gaps—not just pad the numbers.

🌍 Who’s Coming Now?

The face of migration has changed. Gone are the post-war waves of Greeks, Italians, and Maltese. Today’s arrivals come from India, China, Nepal, Brazil, the Philippines, and increasingly from Africa and Latin America.

Australia doesn’t target ethnicity—it targets economic viability. Can you pay for your degree? Do you have a skill we need? That’s the filter.

But the skilled migration list—the bureaucratic document that defines which jobs are “in demand”—often lacks precision. It’s a wishlist, not a workforce strategy. Some industries get flooded with applicants while others remain chronically understaffed.

Kuestenmacher likens it to ordering off Uber Eats: we list the jobs we want filled, but there’s no guarantee the system delivers what’s actually needed.

💰 Why Migration Keeps Australia Afloat

Australia is hooked on migration. With an ageing population and more retirees than new workers, migration keeps the economy alive. Around 90% of new migrants are under 40. They’re the taxpayers who fund schools, hospitals, and infrastructure. Without them, the system buckles.

• 90% of new migrants are under 40

• They contribute to 52–54% of federal tax revenue

• Without them, Australia faces a shrinking workforce and fiscal strain

So when politicians promise to “slash migration,” ask them what they’ll cut next—aged care? Roads? Public schools? Because without young migrants, the tax base shrinks and the bills pile up.

🏘️ Housing Affordability: A Convenient Scapegoat

Even during the pandemic, when migration was negative, house prices continued to rise. Yardney has long argued that this proves housing affordability is a structural issue—not a demographic one.

Australia’s political and financial systems are built around rising property values. Most voters own homes. No one campaigns on lowering house prices.

Migration adds demand, yes—but the real culprits are restrictive planning, underinvestment, and policy inertia. Blaming migrants is politically convenient. Fixing the system is harder.

🧭 What Needs to Change

If Australia wants to fix this, it needs a migration strategy that’s sharp, targeted, and future-focused:

• Align university degrees with future economic needs

• Update the skilled migration list in real time

• Fast-track residency for high-value graduates

• Integrate migration with housing and infrastructure planning

Migration isn’t the problem. It’s the lifeblood of a young, growing, resilient Australia. The myth that students are stealing homes? It’s just noise. The real story is far more complex—and far more urgent.

Author’s Note: This article draws on insights from a conversation between two of Australia’s leading thinkers in migration and property—demographer Simon Kuestenmacher and property expert Michael Yardney. See full video HERE. Their perspectives have helped shape the analysis presented here, particularly around the economic impact of international students, the structural nature of housing affordability, and the strategic shortcomings of Australia’s migration system.