Immigration and housing affordability have become politically inseparable in contemporary Australia. This paper argues that Australia’s housing crisis is primarily a supply failure, not simply a population issue. It examines international and Australian evidence on migration and housing markets. It also considers the role of skilled migration in strengthening the productive capacity of the economy.

This paper proposes that public debate about the cost of living is based on a misunderstanding of how living standards should be measured. The paper contrasts movements in consumer prices with movements in wages. It identifies sectors where affordability has deteriorated in wage-adjusted terms, arguing that these outcomes are not arbitrary.