Australia’s population is booming. ABS data shows the national population hit about 27.54 million in March 2025. That surge is driven by record migration, roughly 110,000 overseas arrivals in the March quarter and about 315,900 over the last year, far above the long-term annual average (~220,000). In short, more people = more homes needed. HIA economists warn this means housing demand far exceeds supply, keeping upward pressure on prices even though the government’s Home Guarantee scheme and planning reforms are helping with first-home buyers.
Tight Supply & Competition
Supply hasn’t kept pace. New home starts are still low and rental vacancy is at crisis levels. One analysis notes two-thirds of areas have vacancy rates under 1%, meaning very tight stock. In many suburbs, listings are well below pre-COVID levels. The result: fierce competition for every available property and steady price growth. Even with incentives like the Home Guarantee Scheme and streamlined planning, experts agree supply will take time to catch up. For now, buyers must be prepared to move fast and bid competitively.
Growth Hotspots for Investors
Not all markets are equal. Population growth is especially strong in the western and northern states. According to recent ABS/HIA data, Western Australia is about 142,300 people above its pre-pandemic trend, and Queensland is about 137,060 above trend both impressive for their size. Other states showing gains above trend include South Australia (+47,520) and Tasmania (+15,060). In contrast, NSW (-66,640) and Victoria (-198,510) have lagged behind their old growth paths.
- WA: +142,300 above trend
- QLD: +137,060 above trend
- SA & TAS: +47,520 and +15,060 respectively
- NSW & VIC: -66,640 and -198,510 (below trend)
What It Means for Buyers & Investors
For new buyers and investors, the key takeaway is that demand is winning for now. High population growth and migration mean plenty of renters and owner-occupiers competing for homes. Interestingly, some longer-term investors are actually exiting the market – many of them bought at higher prices 5–10 years ago, and now face rising holding costs (higher land tax, compliance fees, etc.) and uncertainty from shifting policies. They feel “risk > reward,” so they’re selling. This creates a bit more supply on the market, which savvy buyers can tap into. But overall, buyers still outnumber homes. As one industry report puts it, housing “demand continues to exceed available supply”.
In this environment, buyers need both speed and strategy. Stock appears briefly and can go quickly. That’s where a buyer’s agent is valuable – we track listings, negotiate, and help clients move fast to secure the best value without overpaying. In short, while the market is competitive, the fundamentals are strong for long-term investment. Prices may keep rising in many areas as demand holds firm.
Act Now with Expert Help
Ready to make your move? Working with an experienced buyer’s broker can give you an edge. Investmate’s team combines local market insight with fast action, so you don’t miss out. Book a free consultation today or call us at +61 421 942 049. Investmate is here to guide you every step of the way and secure the best property for you.