By Michael Yardney February 13, 2026

A A A

0 View comments

Why Our Politicians Secretly Don’t Want Housing to Be Affordable

Weekly Latest
Why Our Politicians Secretly Don’t Want Housing to Be Affordable

Key takeaways

Despite decades of inquiries, grants, and schemes, affordability hasn’t improved.

That’s not incompetence, it’s because affordable housing isn’t politically desirable. Most voters are homeowners who don’t want prices to fall, and politicians know it.

Government programs like first-home grants, low-deposit schemes, and shared equity models sound helpful, but ultimately push prices higher.

They stimulate buying power rather than addressing the real constraints: supply, zoning, and infrastructure.

Australia’s economic model depends on high and rising property values, so political “solutions” are structured to maintain the status quo.

Around 94% of federal politicians own property, and many hold multiple investments.

When the rule-makers personally benefit from negative gearing, CGT discounts, and capital growth, it’s no surprise those policies remain untouchable.

If the system is designed to keep property values stable or rising, long-term investors can use that to their benefit.

Strategic buying and a structured wealth plan will continue to outperform political promises. This environment supports those who already own assets — and rewards those who build a well-planned portfolio.

Let’s be honest - if Australian politicians really wanted housing to be affordable, it would be by now.

They’ve had decades to fix it. There have been inquiries, commissions, roundtables, and countless election promises.

Billions have been thrown at “affordability schemes.” And yet, what do we have to show for it?

Record-high property prices, with the total value of all residential property in Australia rising by over $50 billion each month,-high rents, and a generation of young Aussies wondering if they’ll ever own a home.

Call me cynical, but maybe that’s not an accident.

Maybe the truth is that our political leaders don’t actually want housing to be affordable, because the system works beautifully for them just the way it is.

With 70% of Australians owning or paying off their home, which they see as their castle, no politician wants to see the value of residential real estate fall, especially since our banking system and our economy are underpinned by property.

And if you look further into it, you’ll find many of our politicians are deeply invested - quite literally - in property.

Many own homes, investment properties, and even commercial assets. They benefit from the same tax incentives, capital growth, and rental income streams as “ordinary” investors.

So, when you hear another “plan for affordable housing” announced from Canberra, it’s worth asking: affordable for whom?

Housing Affordability

The illusion of affordability

Every election cycle we’re told that the government “cares about housing affordability.”

But when you look at the policies - the 5% deposit schemes, first home buyer grants, shared equity programs - they tend to inflate demand without addressing the real issue: supply and infrastructure.

These measures sound compassionate, but function like sugar hits. They help people chase property, pushing up prices rather than making housing genuinely cheaper.

As economist Saul Eslake famously put it: “Politicians don’t want house prices to fall — they just want housing to be more affordable at higher prices.”

It’s a political paradox because while falling house prices would make homes more accessible, they’d also enrage millions of existing homeowners who see their home as their main store of wealth.

And that, politically speaking, is a nightmare.

On the other hand, as housing becomes “less affordable,” homeowners and investors feel richer, which increases consumer confidence and boosts the economy as Aussies spend more, which helps (you guessed it) votes.

Token efforts to “solve” the problem

To be fair, governments occasionally launch ambitious sounding schemes like the $10 billion Housing Australia Future Fund, which promises 30,000 “affordable” homes over five years.

But when Australia needs at least 45,000 new affordable and social homes every year just to stop the gap from widening, that’s like trying to put out a bushfire with a garden hose.

These gestures look good on press releases but barely make a dent in the real problem.

They’re political cover, not structural reform.

Why politicians can’t afford for prices to fall

Here’s the political reality: letting property prices drop significantly is electoral suicide.

Homeowners (most voters) would feel poorer.
Investors (including politicians) would lose wealth.
Banks (a backbone of our economy) would see their balance sheets contract.

In other words, our entire economic model depends on ever-rising housing values.

That’s why governments tinker around the edges rather than tackle the heart of the issue - they need the illusion of “action” without the consequence of falling prices.

The cultural bias runs deep

Having said that, Australia’s love affair with property isn’t just political - it’s cultural.

We’ve been raised to believe home ownership equals success, and property investment equals wealth.

So our policies reflect that belief system.

Governments measure prosperity in part by rising house prices. The media celebrates “record home values.” Banks market property as the safest investment on earth.

The result? The housing affordability “system” hasn’t failed by accident. It performs exactly as designed, rewarding those who already own property at the expense of those who don’t.

When the referees are also players

Something else to think about is the fact that around 94% of federal politicians own property, compared to about 67% of everyday Australians.

Roughly one in three MPs and senators own three or more properties. Some even hold small portfolios that rival those of professional investors.

So it’s not really surprising that negative gearing and capital gains tax discounts remain politically untouchable.

Or that almost every “housing policy” props up property prices instead of easing them?

Some would say that you can’t fix affordability when the people writing the rules are personally invested in keeping property values high.

So what can property investors learn from this?

For savvy property investors, the message is clear: the system is built to protect property values.

And, of course, at the end of the day, this is good news for property investors.

Because as frustrating as the political doublespeak around “affordability” can be, it also means the government will continue to do everything it can to keep property prices stable and ideally, rising.

If you already own investment properties, that bias works in your favour. And if you’re looking to build a portfolio, it means time is still on your side, as long as you buy strategically.

That’s exactly where an obligation free chat with a Metropole Wealth Strategist can help.

Rather than speculating on short-term market moves, our team helps you craft a long-term, evidence-based plan to grow, protect, and pass on your wealth safely.

If you’d like personalised guidance on how to take advantage of this political and economic environment, click here now to book your complimentary Wealth Discovery Chat with one of our wealth strategists at Metropole.

Because even if the politicians are playing their own property game, there’s no reason you can’t win yours.

About Michael Yardney Michael is the founder of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.