🧠 Reality check: There was a time when Australians weren’t obsessed with housing prices. That’s hard to imagine now, with the median house price in Adelaide hitting $1 million — a stark reminder of how far things have spun out of control.
🏡 Why it matters: Despite bold campaign promises, the major parties’ housing policies could do more to inflate prices than fix affordability.
🧠 What’s happening:
The Coalition and Labor are both pitching big housing plans ahead of the election.
Each party claims to support first home buyers — but economists warn their proposals will actually push prices higher.
👍 The good: Supply-side solutions
Both parties acknowledge the need to build more homes:
Coalition: $5 billion infrastructure fund to help councils build roads, sewerage, and power for new developments.
Labor: $10 billion plan to build 100,000 new homes, exclusively for first-home buyers.
Yes, but: While helpful, these are longer-term plays. And the policies making waves are the ones that give people more cash to throw into an overheated market.
👎 The bad: Demand-boosting giveaways
Coalition
Let first home buyers access up to $50,000 from super for a deposit.
Allow mortgage interest tax deductions on newly built homes.
⚠️ Problem: That $50K could be worth $500,000 at retirement if left in super (based on 8% compound annual returns over a 30 year period).
⚠️ Higher-income earners benefit most from tax deductions.
Labor:
Let first home buyers purchase with just a 5% deposit.
⚠️ Problem: Risky lending. Critics warn it won’t ease demand and increases financial exposure for the government.
📈 What the experts say:
CoreLogic’s Tim Lawless estimates these policies could lift house prices by at least 5%. As a “conservative guess.”
Economist Chris Richardson calls it a “dumpster fire of dumb”, arguing it’s the classic mistake: more money chasing the same number of homes.
🎤 The spin:
At the ABC debate, both leaders dodged questions about price pressures, focusing instead on supply.
Dutton rolled out his son to talk about housing struggles — while quietly admitting Dutton Jr. will rely on the Bank of Mum and Dad.
Albanese continues spruiking the benefits, downplaying inflationary risks.
💬 The bottom line:
Australia’s housing crisis isn’t just about access — it’s about policy choices. Right now, both major parties are betting on popularity over prudence. And young Australians dreaming of homeownership? They’re left hoping for more than just good intentions.