Australia’s borders were closed and population growth stalled – so why are houses so expensive?

by Josh Nicholas

22 June 2022

The past two years have also amplified other longer-term trends such as smaller household sizes, movement out of capital cities, a decreasing rental supply and pent-up demand for home ownership.

Apartment rents in some areas of metropolitan Melbourne fell almost 30% in 2020, but have since recovered almost all of that in the past 12 months, according to recent CoreLogic data. Tim Lawless, a research director at CoreLogic, says that border closures may have contributed to this initial drop due to fewer migrants, tourists and international students.

But the price recovery began well before the borders were opened as Australians chased what was now relatively affordable housing in inner cities.

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