Soaring property prices push more expats to leave Australia

Australia's cost-of-living crisis is fuelling an exodus of skilled migrants, with affordability pressures pushing many to reconsider their future in the country.

According to the Australian Bureau of Statistics, migrant departures rose by 8% in 2023-24, while migrant arrivals fell by 10% compared to the year prior. This marked the first annual drop in net overseas migration since borders reopened.

Housing affordability is a key driver. In Sydney and Melbourne, house prices have surged by 4,645% and 3,496% since 1975, while wages grew just 1,183% over the same period.

CoreLogic data shows rents have increased 36.1% since March 2020, outpacing wage growth of 12.7%. A median-income household is now spending 32.2% of gross income on rent, the highest proportion in two decades.

Róisín Cahill, property strategist at Ireland-based Emerald Sage Property Buying Consultants, says many Irish expats are heading home, not just to be closer to family but because re-entering the property market after time abroad can be unexpectedly challenging.

She says returnees often underestimate the preparation required to buy back home.

"Being mortgage-ready before leaving Australia means they can act fast," Cahill says. "Expats assume they'll have time once they land, but they're already behind local buyers."

One Irish expat, Ciara, who returned in 2022 with €100,000 (around $160,000 AUD at the time) in savings spent nearly two years in limbo before securing a home, stalled by a six-month work probation, bidding wars, and a competitive market.

Cahill urges expats to begin preparing at least six months ahead of their move. "The key difference between a smooth transition and a drawn-out struggle is preparation," she said. 

"In today's property market, hesitation can be the costliest mistake."