Making the process of buying and renting a home in Australia more accessible has become a key focus for politicians in Canberra as they vie for votes ahead of the upcoming federal election. With housing affordability and rental affordability at record lows, political parties have already begun proposing housing policies to address these concerns. The housing crisis in Australia has worsened in recent years due to rising home prices, rents, and interest rates. Since the previous election in May 2022, Australia’s median house price has increased by almost 11% to $825,000, while units have seen a 7% increase. Additionally, house rental prices have risen by 27% to $635 per week, and unit rents have jumped by 38% to $620 per week.
Labor’s housing policies have focused on delivering the promises made during the previous election. The Help to Buy scheme, which provides equity contributions to homebuyers, has been a flagship policy aimed at assisting 40,000 homebuyers. The government has also announced plans to soften home lending rules to exclude HECS student debts from mortgage applications, increasing borrowing power for first-home borrowers. On the supply side, Labor has established the $10 billion Housing Australia Future Fund (HAFF) to build 30,000 social and affordable homes in five years. They have also invested in initiatives such as the social housing accelerator and the housing infrastructure facility. However, critics argue that these policies may cost the government billions of dollars and question the government’s role in home ownership.
The Coalition, on the other hand, has focused on helping first-home buyers enter the property market. Their main policy is the superannuation for housing promise, which allows Australians to access up to $50,000 of their super to buy their first home. They have also pledged to reduce overseas migration, cut permanent migration numbers, and ease home lending rules to increase borrowing power. To boost housing supply, the Coalition has committed $5 billion for housing infrastructure, funding essential infrastructure at greenfield housing development sites. They have also promised to freeze changes to the National Construction Code for 10 years.
The Greens, although unlikely to form government, could play a significant role in the next parliament. Their housing agenda focuses on renters and first-home buyers. They propose freezing and capping rent increases, establishing a National Renters Protection Authority, and phasing out tax benefits for property investors with more than two properties. They also aim to introduce a discount HomeKeeper rate for cheaper mortgages and create a public property developer to build 360,000 public homes over five years. However, the costings for the public property developer plan have been deemed “highly uncertain” by the Parliamentary Budget Office.
While the major political parties have different housing agendas, it is clear that housing has become a top-tier issue across the political spectrum.
