The study, released by the Institute of Public Affairs (IPA), shows that an increase in unplanned net overseas migration by the federal government, which will exceed 1.75 million by 2028, will create a shortage of 252,800 housing units.

The latest figures come from adjustments to the overseas immigration figures in the 2023-24 federal budget, as well as natural population growth.

Daniel Wild, deputy executive director of the IPA, said every state and territory would be affected by 2028, with New South Wales having the highest housing shortage at more than 70,000 units.

"Every Australian should have the opportunity to own their own home, however, the surge in demand from unplanned migration growth will make housing more difficult to afford for both Australians and new migrants alike," he said.

The IPA breaks down the housing shortage as follows

- NSW: 70,889

- Victoria: 62,168

- Queensland: 54,591

- Western Australia: 34,720

- South Australia: 18,162

- Tasmania: 8922

- Northern Territory: 2624

- Australian Capital Territory: 2325

Mr Wilder said Australia had proved to be one of the most welcoming and tolerant communities in the world.

"Sustainable migration has been the cornerstone of our success, but what the federal government is now proposing is not only unsustainable, it will exacerbate the problems faced by mainstream Australians," he said.

The IPA study noted that the cost of the housing shortage between 2023 and 2028 would be about $142 billion, or an average of $24 billion per year, based on the cost of the additional housing that would need to be built to accommodate the expected growth in migration.

"The federal government's unplanned surge in migration will further exacerbate inflation as increased demand without any increase in productivity means Australian households will keep paying more and more at the checkout," Mr Wild said.

"In addition, an unsustainable surge in migration will put further pressure on key economic and social infrastructure, such as schools, roads and hospitals, which are already stretched under pressure."

An IPA poll released in May showed that 60 percent of Australians want a temporary halt to the intake of new migrants until more economic and social infrastructure, such as schools, roads, hospitals and housing, is built.

"We are told this unplanned surge in immigration will cure our worker shortage crisis, yet our leaders have the tools to begin addressing Australia's unprecedented worker shortage with simple and effective reforms, such as cutting red-tape and putting our retirees, veterans and students to work," Mr. Wild said.

This is as people in cities continue to consider leaving in search of more affordable and comfortable regional lifestyles.

However, Dr Laura Crommelin, senior lecturer in urban planning at the University of New South Wales, said it was unrealistic to rely on smaller regional cities to solve housing problems.

"Our larger cities continue to offer a wider range of employment opportunities, which means they will continue to attract new residents," she said.

"As a result, smaller regional areas are unlikely to significantly relieve pressure on large cities, at least in the short term.

Dr. Crommelin said rapid growth without proper planning could replicate problems faced in urban areas to regional areas, such as housing affordability.