Major Parties Combine To Pour Petrol On Flaming Housing Market

ERROL PARKER | Editor-at-large | Contact

With just 18 days until the federal election, both major parties have released housing policies that economists say risk driving up demand without addressing the underlying issue of supply.

Prime Minister Anthony Albanese on Sunday announced an expansion of the government’s 5% deposit scheme, allowing more first-home buyers to purchase properties with minimal savings and no lenders mortgage insurance. The plan is backed by a $10 billion fund to build 100,000 homes, though construction is not scheduled to begin until 2026–27, and that’s wholly dependant on the state and territory governments playing ball.

Opposition Leader Peter Dutton responded with a Coalition policy offering tax deductions on mortgage interest for first-home buyers purchasing new builds, up to a certain amount. The measure, which is “means-tested”, could save individuals up to $12 000 annually. Dutton also reaffirmed the Coalition’s support for allowing young Australians to access their superannuation for a home deposit.

While both parties claim to be improving housing affordability, economists have warned that the proposals risk inflaming an already overheated market.

“Boosting demand without concurrently boosting supply is a recipe for further price growth,” said one housing policy analyst.

“We’ve seen this play out before. It’s good if you’ve bought recently. Bad if you’re just some cunt with a shit job.”

Neither major party has committed to significant zoning reform or land release, and the bulk of promised new supply, including Labor’s 1.2 million homes under the National Housing Accord, is slated for delivery over the next five years.

With voters facing record rents and shrinking home ownership rates, both parties have chosen to prioritise short-term political gains over structural reform.

More to come.