Melbourne Named Australia’s Immigration Hub: 86% of New Residents Are Overseas

A significant majority of new residents arriving in Melbourne since the onset of the pandemic—almost 90%—are international migrants, according to striking research findings. Data from the Australian Bureau of Statistics, analyzed by the Institute of Public Affairs, reveals that nearly 350,000 net overseas migrants made Melbourne their home between 2023 and 2025, representing 86% of the city’s population growth during that period.

Melbourne emerged as the top destination for international migrants, attracting 27% of all net overseas arrivals in Australia. This influx puts additional pressure on the Albanese government, which is under scrutiny as it prepares for a significant overhaul of the immigration system.

Immigration Minister Tony Burke has committed to reducing annual net overseas migration from approximately 300,000 to 245,000 this financial year, with a further decrease to 225,000 planned for the next year. The research indicates that international arrivals have now surpassed both natural population growth and internal migration patterns in Melbourne.

From 2023 to 2025, Melbourne experienced a natural increase of 86,580 people, calculated from the number of births minus deaths. However, during the same time, 28,886 residents relocated from Melbourne to regional Victoria and other Australian states.

This data highlights that overseas migration has significantly outstripped natural growth by a ratio of roughly four to one, emphasizing the city’s increasing reliance on international newcomers rather than on rising birth rates. India accounted for the largest group of migrants, followed by nations such as China, the Philippines, and Sri Lanka.

The new arrivals primarily settled in major growth areas, with one quarter locating in inner Melbourne, 18% in the outer southeast, and 15% in the western suburbs. This surge in population adds to the existing strain on housing and infrastructure in these neighborhoods.

Despite the majority of population growth being driven by migration, Melbourne’s outer suburbs still exhibit the highest birth rates. The western suburbs recorded the most significant natural increase, with nearly 29,000 additional residents attributed to births exceeding deaths. This trend reflects the demographics of these communities, which tend to have larger families.

In stark contrast, Melbourne’s established inner eastern suburbs saw virtually no natural growth, with only 17 additional individuals reported during the two-year timeframe. This data coincides with the city’s current fertility rate, which has dropped to a historic low of just 1.4 children per woman, below the 2.1 threshold necessary for sustaining the population without migration.

The political landscape is charged, with both the Coalition and One Nation advocating for reduced permanent and overall migration, asserting that the government has failed to meet its previously stated targets for migration reductions. As pressure mounts over Australia‘s population growth, the Albanese government is set to unveil new migration reform initiatives.

Rather than implementing sharp cuts, the government’s approach aims to restore migration levels to pre-pandemic figures, as net overseas migration has consistently remained above 300,000 annually. Future projections from Treasury suggest that net overseas migration will decrease to 245,000 by 2026–27, followed by a further reduction to 225,000 in subsequent years.

Ministers argue that these reductions can be achieved through enhanced visa regulations, stricter compliance measures, and tighter oversight of temporary migration programs, all while ensuring that businesses continue to have access to necessary skills and labor. These reforms are anticipated to help alleviate strains on housing, infrastructure, and public services without compromising the economic advantages that migration brings to Australia.