The housing crisis is scaring people away from New South Wales, which could hamper the state’s economic recovery, according to Tom Forrest, Urban Taskforce Australia CEO.
Forrest’s comments come after new ABS population data showed that NSW is losing massive numbers in interstate migration to the other states.
“That means that while the population grew Australia-wide in the 12 months to June 2022 by 1.1%, in NSW the population only grew by 0.7%,” he said. “NSW recorded close to the lowest population growth rate of all the states of Australia. The population of Queensland grew by 2%, WA 1.3%, Victoria, and SA both grew by 1% with only Tasmania lagging behind NSW with population growth of 0.6%.”
The Urban Taskforce chief also noted that NSW has lost 43,451 people to other states over the last 12 months – that’s a big number compared to just 17,233 lost by Victoria, despite its extensive lockdowns. All other states, meanwhile, saw a rise in their population due to an inflow from NSW and Victoria.
“The cost of a home and the cost of rent are all reflections of the efficiency of the planning system,” Forrest said. “The first and primary task for the planning system is to deliver enough homes to house the population. We have a supply crisis, so something has gone very wrong. Young people are fleeing NSW as a result.”
Forrest said NSW was suffering from a policy disaster in the planning space, which started with GCC’s 2017 Regional Plan. This was exacerbated, he said, by the former planning minister’s “obsession with strategic plans which dragged planning resources away from the assessment of development applications” as well as by the COVID pandemic period.
“We have an ageing population, the majority of whom do not have strong superannuation balances to support their retirement years,” Forrest said. “This means the call on government funding to support health care, aged care, and associated services is growing. The last thing we need is to lose young people to other states because they can’t afford a home here in NSW. As many head for a Christmas break, today’s ABS data is a timely reminder that there is a lot to do to fix the planning and housing supply mess we find ourselves in in NSW.”
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