Australia's population expanded by 423,600 people in the year to September, reaching 27.7 million and maintaining pressure on an already stretched housing market, according to new data from the Australian Bureau of Statistics.
The 1.6% annual growth rate—driven predominantly by net overseas migration of 311,000 people—continues to fuel housing demand at a pace construction cannot match, with implications for property prices and stock availability across major markets.
Net overseas migration accounted for nearly three-quarters of the population increase, while births minus deaths contributed 112,600 people.
"Our population grew to 27.7 million, with 423,600 more people than in September 2024," ABS head of demography Phil Browning said in a media release.
The growth rate sits on par with the 20-year average but remains well above the federal government's 2025 Population Statement, which projected 1.3% growth by the 2025-26 financial year.
Over the four years to September, net overseas migration accounted for 78% of Australia's 2.02 million population expansion, with temporary visa holders forming the majority of arrivals.
Around 3 million temporary residents are now included in Australia's official population figures, according to Sustainable Population Australia. The organisation notes that over one million people hold student visas, all of whom require housing and access to infrastructure.
The population growth varied significantly by state. Western Australia recorded the fastest state growth at 2.2%, followed by Victoria and Queensland at 1.7% each. Tasmania grew just 0.3% over the period.
CoreLogic head of research Tim Lawless noted in a LinkedIn post that the population increase was "12% above the decade average but 36% down on the post COVID high" when nearly 662,000 people were added in a single year.
"For housing, there is still plenty of demand side pressure coming through, running up against ongoing supply side challenges," Lawless wrote.
He added that while affordability constraints, serviceability challenges and higher mortgage rates present headwinds, "the ongoing demand/supply mismatch should help to keep a floor under housing prices.”
While Lawless focused on market dynamics, advocacy groups are raising policy concerns.
“In the year to September 2025, net overseas immigration remained unsustainably high at 310,991, well above pre-COVID levels and more than three times its long-term average of around 80,000 per annum," Sustainable Population Australia's national president Peter Strachan said.
In a media release, the organisation has called for a coherent long-term immigration policy to allow state and local governments to plan infrastructure and housing supply more effectively, arguing the federal government is running an ad-hoc system during a period of extreme housing stress.
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