The Challenges of Australia's Housing Market: Implications for International Talent.

Australia's housing market continues to pose significant challenges, including for skilled migrants undergoing a corporate relocation. The 2025 Demographia International Housing Affordability Survey highlights the worsening affordability crisis, with four major cities in Australia being declared “impossibly unaffordable”.

Sydney, Melbourne, Perth, Adelaide and Brisbane all made the top 20 most unaffordable cities across 95 markets globally.

The Survey provides a comprehensive assessment using the median price-to-income ratio (or "median multiple") to evaluate affordability, categorizing markets from "affordable" to "impossibly unaffordable".

Australia continues to be one of the least affordable nations for housing, second only to Hong Kong. The report highlights that:

• In 2nd place, Sydney, continues its climb to the top, rivalling Hong Kong as the world’s most expensive housing market.

  
  

• Adelaide ranks as the sixth most expensive globally, Melbourne 9th, Brisbane 11th, all ranked ‘impossibly unaffordable’ with Sydney.

  
  

• Perth, as the 18th most expensive city was ranked as ‘severely unaffordable’.

It is remarkable that these markets are less affordable than New York, London and Chicago.

Australia continues to be one of the least affordable nations for housing, second only to Hong Kong. The report highlights that:

• Sydney is on track to become the world's most expensive housing market, surpassing Hong Kong.

• Adelaide ranks as the sixth most expensive globally, with housing costs exceeding those in London and New York.

• Brisbane and Perth are also experiencing worsening affordability, moving up the rankings of the least affordable markets.

How Expensive Home Ownership Drives Up Rent

The high cost of home ownership in Australia has a direct impact on rental prices. As property values rise, landlords adjust rents accordingly, making affordable rental accommodation difficult to secure. This issue disproportionately affects international professionals relocating to Australia, who rely on rental housing upon arrival. The inability to find reasonably priced housing can deter skilled workers from relocating to Australia, creating obstacles for employers to attract global talent.

The Housing Market as a Barrier to Skilled Migration

For skilled migrants, cost of living and housing affordability is a critical factor in their decision to relocate. High rental costs, coupled with the difficulty of entering the property market, can lead to financial stress and reduced quality of life at precisely the moment employers want to make a good first impression. This, in turn, affects job satisfaction and retention rates, as employees may return home or seek opportunities in more affordable locations. Employers must recognize that Australia’s current housing challenges are not just personal concerns, but strategic business issues that impact workforce stability.

How Employers Are Helping

In today’s tight Australian rental market, where demand far exceeds supply, employers are recognising that simply providing a lump sum relocation allowance may not be enough to ensure international talent secures suitable housing. While financial assistance offers flexibility, it places the burden on employees to navigate an overwhelmed and competitive rental sector - often with limited local market knowledge or resources.

At EWR, we have seen a number of corporate clients turn to providing home search support to identify & secure accommodation, reducing stress and inefficiency for incoming talent. This approach ensures employees move into appropriate accommodation faster, allowing them to focus on their new role rather than the logistical challenges of finding a rental in a high-demand market.

The speed with which relocation agents can secure long-term housing, also reduces time in short-term accommodation, significantly reducing costs.

While relocation allowances offer perceived choice for the employee, they do not guarantee a successful outcome. Skilled migrants unfamiliar with local leasing regulations and availability constraints often struggle to secure a property even with this financial support.

By engaging a professional destination service provider, employers provide direct access to market specialists who understand current vacancy trends, know local agents to gain access to off market properties, negotiate leases, and offer tailored solutions based on individual needs. This expertise is particularly valuable in cities like Sydney, Melbourne, Perth and Brisbane, where vacancy rates are at record lows and properties are leased within days.

Organisations which invest in corporate relocation support also cite the positive impact this has on their brand as an Employer of Choice which is committed to employee well-being, enhancing retention and their overall employee value proposition.