Housing takes centre stage in election campaign amid ongoing crisis
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Photo by August de Richelieu
Australia’s housing crisis has emerged as a key battleground in the federal election, with major parties racing to present solutions for home ownership and supply challenges.
Real Estate Institute of Australia (REIA) President Leanne Pilkington said the industry body has welcomed the increased focus on housing, noting that both major parties’ commitments align with elements of REIA’s election platform.
“Both major parties firmly recognise that housing is a priority issue for voters,” Ms Pilkington said.
“This election presents a real opportunity to deliver the long-term policy reform needed to make home ownership a reality for more Australians, the incoming Government will be judged on its ability to turn policy into actual houses.”
Despite bipartisan commitment to address the housing shortage, Australia continues to fall short of the national agreement to build 1.2 million new homes from mid-2024.
Structural obstacles including underutilised housing stock, planning delays, high construction costs and inflation remain significant barriers to progress.
Labor has proposed allowing all first home buyers to purchase with a 5% deposit and pledged $10 billion over eight years to build 100,000 homes exclusively for first-home buyers.
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The Coalition’s approach focuses on mortgage affordability through income tax deductions for first home buyers of new builds, access to superannuation for all first home buyers, and a review of APRA lending rules.
Ms Pilkington noted that while the parties differ in their approaches, both share the goal of increasing home ownership rates.
REIA has cautioned that with multiple demand-side policies being proposed, there could be upward pressure on prices in some market segments.
The organisation has expressed concern about the Greens’ continued support for abolishing negative gearing and changing capital gains tax arrangements.
“Policy stability is essential,” Ms Pilkington said. “This is not the time to dismantle frameworks that underpin rental supply and investment. We need solutions that build on what works and focus on outcomes.”
REIA emphasised that policy announcements must be backed by practical implementation, measurable outcomes and ongoing accountability to deliver meaningful improvements in Australia’s housing market.