Key takeaways
The housing crisis is now a deeply personal issue for millions of Australians, with affordability and availability at critical levels.
With a federal election looming, housing affordability is poised to dominate as the defining issue, with voters demanding real solutions.
Australians are holding the federal government accountable, with two-thirds of survey respondents expecting the government to solve the crisis. 70% believe the current administration has failed to take sufficient action. Politicians who ignore this frustration risk severe electoral consequences.
The housing crisis isn't just about affordability; it affects mental health, productivity, and community cohesion. Stable housing is essential for workforce mobility and societal well-being, and its absence highlights a failure of governance.
Australians are fed up.
The housing crisis is no longer a distant policy issue—it’s personal, affecting millions who are struggling to find affordable homes to buy or rent.
With a federal election coming up, voters have made it clear: they expect real solutions, and politicians who fail to deliver may face harsh consequences at the ballot box.
With housing set to dominate the upcoming federal election, the battle lines are drawn, and the stakes couldn’t be higher.
A recent survey conducted by Insightfully for Master Builders Australia highlights the depth of public frustration. It reveals that:
- 90% of Australians find it challenging to buy or rent a home.
- 85% believe there is a critical housing shortage.
- 70% feel the crisis has worsened over the past year.
- Over a third have sacrificed essentials like food or medicine to cover housing costs.
These statistics are a sobering reflection of the housing crisis' toll on everyday Australians, and now, voters are looking to politicians for bold action, not empty promises.
A tale of two approaches
The two major political parties—the Australian Labor Party (ALP) and the Liberal-National Coalition—have laid out their visions for addressing the housing crisis.
However, their approaches differ significantly.
1. Australian Labor Party’s proposed solutions
- Housing Australia Future Fund (HAFF): A $10 billion fund designed to deliver 30,000 new social and affordable homes over five years, marking one of the largest federal housing investments in decades.
- Help to Buy Scheme: A shared equity initiative where the government co-purchases up to 40% of a new home or 30% of an existing one, targeting low- and middle-income earners. While this will get more first-home buyers in the market, it doesn’t tackle the supply issue and will only push property values up higher.
- Regional First Home Buyer Guarantee: A program enabling first-home buyers in regional areas to purchase properties with as little as a 5% deposit without incurring lenders’ mortgage insurance.
- Social Housing Accelerator: A $2 billion program aimed at fast-tracking the delivery of new social homes, with states and territories committing to allocate funds by mid-2025.
These policies focus on leveraging federal resources to address the housing crisis, particularly for low-income earners and regional residents.
2. Liberal-National Coalition’s proposed strategies
In contrast, the Coalition has prioritised reducing regulatory barriers and stimulating private sector involvement:
- $5 Billion Infrastructure Fund: A plan to build 500,000 new homes by investing in critical enabling infrastructure such as roads and water systems.
- National Construction Code (NCC) Freeze: A proposal to halt changes to the NCC for a decade, aiming to reduce costs and regulatory burdens for builders and developers.
- Superannuation Access for Home Purchases: Continuing support for allowing first-home buyers to use their superannuation savings for deposits.
- Temporary Ban on Foreign Purchases: A two-year restriction on foreign buyers and temporary residents purchasing existing homes to ease demand pressures.
These policies reflect the Coalition's belief in minimising government intervention and empowering market forces as the pathway to increased housing supply and affordability.
- Also read:Finally Falling: Will Reduced Migration Rates Help Solve the Housing Shortage? | Property Insiders
- Also read:Adelaide housing market update | December 2024
- Also read:Perth housing market update | December 2024
- Also read:Brisbane housing market update | December 2024
- Also read:Sydney housing market update | December 2024
A nation in crisis
Of course, the housing crisis goes beyond affordability.
When families can’t secure stable housing, it creates ripple effects throughout society.
Productivity suffers, mental health challenges increase, and entire communities are disrupted.
It has become a social and economic issue that affects mental health, workforce mobility, and community cohesion.
This shouldn’t be happening in Australia - for a country that prides itself on providing a high quality of life, this crisis represents a glaring failure of governance.
The political consequences
Not surprisingly, Australians are demanding accountability.
The Insightfully survey mentioned above revealed that two-thirds of respondents hold the federal government primarily responsible for resolving the crisis, and 70% believe the current administration hasn’t done enough.
Housing affordability is shaping up to be the defining issue of the next federal election.
Both major parties are presenting contrasting solutions, but one thing is clear: Australians won’t accept excuses.
Politicians who underestimate the electorate’s frustration risk being voted out.
The time for talk is over. Australians want action, and they’re prepared to make their voices heard.
The housing crisis is a test of political leadership.
Will our leaders rise to the challenge, or will they face the wrath of an electorate that’s fed up with waiting?
The clock is ticking, and voters are watching.
