By Adam Hubbard April 2, 2025

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Federal Budget 2025: Will This Really Be the Game-Changer for Australia’s Housing Crisis?

Property Market News
Federal Budget 2025: Will This Really Be the Game-Changer for Australia’s Housing Crisis?

Key takeaways

The Federal Budget was a welcome change in political direction, prioritising housing more seriously.

However, the housing crisis is complex, and solving it requires far more than funding alone.

Investors who are strategic, informed, and ready to act stand to benefit from ongoing constraints and sustained demand.

There’s no sugar-coating it—Australia is facing a housing crisis.

It’s not just a headline or a political soundbite.

It’s a daily reality for buyers, renters, builders, and yes, investors too.

Our population is growing rapidly, but our housing stock simply isn’t keeping up.

Demand continues to outpace supply, affordability is under pressure, and our building industry is grappling with rising costs and serious capacity constraints.

So, with the 2025 Federal Budget now on the table, the big question is: will it actually make a meaningful difference?

A budget aimed at “building more homes, faster”

The Federal Government has announced a suite of measures designed to address housing shortages and boost construction:

$9.3 billion over five years through a new National Agreement on Social Housing and Homelessness.
$1 billion in low-interest loans to help community housing providers scale up.
Another $1 billion toward enabling infrastructure—roads, utilities, and services that unlock land for development.
A renewed push to meet the National Housing Accord target of 1.2 million new homes over five years.

There’s no denying that these are significant funding commitments.

The focus on infrastructure and social housing is particularly welcome, given that these areas have been underfunded for decades.

Note: Let’s be clear: more money alone won’t solve the housing crisis.

The real constraints—labour shortages, slow planning approvals, red tape, and the cost of materials—won’t disappear because of federal funding announcements.

We need delivery, not just dollars

The government has set an ambitious housing target, and on paper, it’s achievable.

But unless we fix the delivery mechanisms—the “how,” not just the “what”—we risk repeating the same pattern: bold targets that are never met.

And the private sector must be part of the solution.

While this Budget supports community housing and social initiatives, it stops short of addressing the broader issues affecting private developers and investors.

What’s missing?

Planning reform to streamline approvals and unlock land faster.
Incentives to support the build-to-rent sector and attract institutional capital.
Policy certainty for investors who supply over 90% of Australia’s rental housing.

Without a coordinated approach between all levels of government and the private sector, we’re only tackling one side of the equation.

For property investors, the message is clear

For investors who take the long view, the Budget reinforces one core truth: housing demand is here to stay, as are increasing house prices and rentals.

We’re welcoming hundreds of thousands of new migrants each year.

Construction pipelines are constrained.

And as a result, the value of well-located, established properties will only keep increasing.

That’s especially true in our capital cities, where infrastructure is already in place and demand is resilient.

Inner- and middle-ring suburbs with strong transport links, schools, and amenities will continue to outperform.

Yes, we may see more policy tinkering.

Yes, the headlines may swing from optimism to panic.

But through all the noise, the underlying fundamentals remain incredibly strong for those who know what to look for.

A step in the right direction—but not a silver bullet

To give credit where it’s due, the Federal Government has finally put housing front and centre, even though that's probably because an election is coming up.

The funding commitments are substantial, and the tone has shifted from reactive to proactive.

But this isn’t a silver bullet.

We’re still waiting for serious planning reform, better coordination with state governments, and meaningful incentives to support the private sector’s role in housing supply.

Until those pieces are in place, progress will be slow.

Targets will remain just that—targets.

And Australia’s housing crisis will continue to evolve from a short-term imbalance into a long-term structural problem.

Final thoughts

This Budget signals a welcome shift in political priorities, but it’s only the beginning.

The housing challenge is complex, and solving it will require much more than just funding.

As property investors, we need to cut through the noise and focus on the fundamentals: growing population, constrained supply, and long-term demand for quality housing.

And that spells opportunity—for those who are informed, strategic, and ready to act.

About Adam Hubbard Adam Hubbard is a senior Wealth Strategist at Metropole and his many years of real estate and wealth creation experience gives him a holistic perspective with which he helps his clients safely grow their wealth through property.