A record number of people arrived in New Zealand compared to the number who left, for the 12 months to July, Stats NZ says. Photo: RNZ / Samuel Rillstone
Net migration has soared after last year's lows with more people picking up work visas, and the inflow is likely having impacts on spending and rental housing, an economist says.
Net migration rose to a record high of 96,000 in the year to July, provisional estimates from Stats NZ show.
The figure is a big turnaround from the year to July 2022, when 14,500 more people left the country than arrived.
Citizens of India, the Philippines, China, South Africa, and Fiji drove the net migration gains for the year to July, during which a net total of 135,600 non-New Zealand citizens arrived. Before the 2023 record levels, the previous record was 80,400 in the March 2020 year.
In the same 12 months to July, a net of 39,400 New Zealand citizens departed.
"The net gain of non-New Zealand citizens continues to set new records, while the net loss of New Zealand citizens is approaching the record loss of 44,400 in the February 2012 year," Stats NZ population indicators manager Tehseen Islam said.
"The record net migration gain in the July 2023 year follows 12 months of a fully open New Zealand border and equates to a net gain of about 19 people per 1000 population
Westpac senior economist Satish Ranchhod said net migration had exceeded its expectations for a peak of 90,000 this year.
"At the current pace, we're on track to reach an annual net inflow of 100,000, perhaps as soon as next month," he said.
Ranchhod said the increased number of migrants on work visas had made it easier for employers to find the staff and skills they need.
"At the same time, the increase in the population is helping to support spending levels in the face of tighter financial conditions."
He said migration may also be affecting the housing market, with a short supply of rental accommodation in Auckland's central business district.
"Rents have been rising at a solid pace, with larger increases in Auckland," Ranchhod said.
"Recent months have also seen the housing market finding a base."
ASB senior economist Mark Smith said annual arrivals of non New Zealand citizens on work visas had hit record highs.
"We continue to expect the pace of strong net inflows to moderate as the NZ economy slows and its allure fades.
"... with the New Zealand economy likely to narrowly avoid continued recession. It is our view that the current migration mix is helping to temper inflationary pressure."