At a time when Australia is buckling under the weight of the dwelling shortage problem, population growth is occurring at record levels, mostly because we are bringing in migrants at unprecedented levels.

The latest data from the ABS shows that the national population rose 2.5% last year.

That means 660,000 added to the Australian population, lifting the total close to 27 million – which is a milestone achieved well ahead of the official government forecasts.

This historically high level of population growth has been fuelled by new people arriving from overseas.

Overseas migration, in fact, accounted for 83% of the increase in population last year, with the rest achieved with “natural increase”, which means that births exceeded deaths.

Net overseas migration was 548,800 – up 60% compared to the previous year.

Those numbers, startling as they are, beg one very big question: where are they all going to live?

We already have an unprecedented shortage of dwellings in this country, especially dwellings available for rental.

The current national vacancy rate, according to Domain, is 0.7%.

Six of the eight capital cities have vacancy rates well below 1%.

The building industry is unable – for a host of reasons - to produce new dwellings at the rate required to keep up with the rapid growth in household formation.

Vacancies are destined to go on falling and the serious under-supply of dwellings will not only continue, but get worse.

And that means the upward pressure on prices and rents will continue.