“Australia’s Housing Affordability Crisis: Latest Updates ahead of the 2025 Election”
Introduction
Australia’s Housing Affordability Crisis: Latest Updates ahead of the 2025 Election” is a hotly debated topic but does it need to be ?
Australia’s housing affordability crisis has long been a hot-button issue, sparking endless debate yet seeing little decisive action.
As property prices continue to soar, the dream of homeownership is slipping further out of reach for many, particularly younger generations and first-home buyers.
Meanwhile, political parties remain deeply divided on how best to tackle the housing affordability crisis, often prioritizing ideological battles over meaningful reform.
In this post, we’ll explore the key perspectives shaping the debate, dissect the policies (or lack thereof) being proposed, and assess whether there are any realistic solutions on the horizon.
Housing Affordability: A Pressing Concern
Recent by-elections in Victoria have highlighted voter dissatisfaction, with housing affordability cited as a significant factor influencing electoral outcomes.
Federal Finance Minister Katy Gallagher acknowledged the challenges of Australia’s housing affordability crisis ahead of the 2025 election, emphasizing the federal government’s commitment to addressing cost-of-living issues, including housing.
Is there an end to the long running debate on our housing affordability crisis ?
Party Platforms on Housing
We take look at how the main political parties are Adressing Australia’s Housing Affordability Crisis with Latest Updates ahead of the 2025 Election”
Labor Party’s Initiatives
The Albanese Labor Government has announced a $10 billion Housing Australia Future Fund, aiming to construct 30,000 affordable homes within its first five years.
This initiative represents the most substantial investment in social and affordable housing in over a decade.
Coalition’s Proposals
The Coalition is advocating for policies that boost housing supply, re-balance migration, and incentivize first-time homebuyers to adress Australia’s housing affordability crisis.
They emphasize reducing red tape and express concerns over potential new housing taxes, such as changes to negative gearing, which they argue could deter investment and increase rents.
Superannuation access to address the Problem
A Coalition led Government will allow Australians to access up to $50,000 from their super to buy their first home.
The money initially withdrawn from super will need to be returned when the house is sold to support retirement.
Greens’ Perspective
The Australian Greens propose a comprehensive approach to housing, including the construction of affordable social housing and the introduction of rent caps to limit price growth.
They also advocate for increasing income support payments and forgiving student debt to alleviate financial pressures on young Australians.
Policy Debates and Expert Opinions
Superannuation for Housing Deposits
A contentious proposal to address Australia’s Housing affordability crisis ahead of the 2025 Election involves allowing Australians to access their superannuation savings for housing deposits.
Drawing from New Zealand’s experience, the Super Members Council warns that such a policy could lead to increased house prices, higher debt levels among first-time buyers, and diminished retirement savings.
Opposition spokesman Andrew Bragg supports the policy, arguing that investing in property provides better outcomes than traditional superannuation investments.
Modular Housing Solutions
To address housing shortages and affordability, modular housing, also known as kit homes or pre-fabs, has gained attention. These homes offer cost savings, reduced production times, and environmental benefits.
However, experts like retired NSW Building Commissioner David Chandler have raised concerns about construction standards and safety, emphasizing the need for clear regulations.
Calls for Bold Action
Industry bodies, such as the Housing Industry Association (HIA), are urging all political parties to take immediate and decisive action to address the worsening housing affordability crisis.
Their “Let’s Build Australia” campaign emphasizes the need for increased housing supply and supportive policies to ensure accessible housing for all Australians.
The Housing Industry Association (HIA), who along with The Master Builders Association of Australia (MBA) are both Highly qualified to provide guidance.
They nationally represent both volume and independent home builders. Both HIA & MBA groups “get it” as to what the solutions are on how to address these issues.
Lets’ Build Australia Campaign
The HIA has launched the “Let’s Build Australia” campaign, urging all political parties to take immediate and decisive action to address the nation’s worsening housing affordability crisis.
HIA Managing Director Jocelyn Martin highlights unprecedented levels of homelessness, limited access to rental accommodation, and a growing belief that home ownership is becoming unattainable for many Australians.
240,000 Homes per Year is the Target
She emphasizes that Australia needs to build around 240,000 new homes per year to meet demand and improve affordability, but in the last 12 months, under 180,000 were completed.
This shortfall drives up prices and worsens affordability but also means the country is set to fall well below the government’s commitment to build 1.2 million homes over five years.
To address these challenges, HIA is advocating for several key measures:
- Infrastructure Investment: HIA proposes a five-year, $12 billion commitment from the federal government to fund essential infrastructure such as roads, water, and sewerage. This investment is crucial to unlocking land supply and making new housing developments feasible. The lack of enabling infrastructure is identified as the primary barrier to increasing housing supply.
- Taxation Reform: HIA points out that taxes can account for up to 50% of the cost of a new home in major cities. They advocate for immediate reforms to remove inefficiencies like stamp duty cascading onto GST, which unfairly inflate housing prices and exacerbate affordability issues.
- Land Supply and Development: The association stresses the need for development-ready land, noting that many housing projects are stalled due to inadequate infrastructure. They call for federal investment in the necessary services to deliver these projects.
- Superannuation Access for First Home Buyers: HIA welcomes policies that allow first home buyers to access up to $50,000 of their superannuation to purchase a home. They argue that saving for a deposit is a significant hurdle for many Australians, and this initiative represents a meaningful step towards addressing this barrier.
HIA’s campaign underscores the urgency of these measures, calling for bold and courageous leadership to prioritize initiatives that directly improve housing supply and ensure everyone has a place to call home.
A Call for Urgent Action on Housing Development Delays
A leading housing industry CEO recently informed me that it now takes an astonishing nine years for a housing land development to become “build-ready.”
This is despite the fact the Australian housing construction sector remains one of the most efficient industries globally.
Such an excessive delay underscores a fundamental lack of coordination, unnecessary complexity, and an absence of political will at all levels of government – local, state, and federal – to streamline the process.
Governments Very Slow to Act
Successive governments have failed to make the tough decisions necessary to cut through the overwhelming red tape and bureaucratic obstacles that hinder development.
The sheer number of regulatory bodies involved has only exacerbated inefficiencies.
Over a decade ago, while working in aged care development, I participated in a NSW government – led initiative inviting industry groups to contribute to a “draft green paper” aimed at simplifying approval processes. Unfortunately, progress has been painfully slow.
Granny Flat heroes
One notable exception was the 2009 introduction of the NSW Government’s Affordable Housing State Environmental Planning Policy (SEPP), which allows residential property owners with land exceeding 450m² (and a minimum 12m street frontage) to build granny flats. This was a step in the right direction – thank goodness for granny flats !
Conclusion
With the 2025 federal election fast approaching, housing affordability and supply remain critical national concerns.
While political parties and industry experts put forward various proposals, no single policy will solve this crisis alone.
A bipartisan approach, driven by industry professionals collaborating with well-informed, committed government representatives is essential to addressing this issue before it escalates further.
As election day nears, the feasibility and impact of these policies will be at the centre of national debate. It is imperative that we prioritize practical, effective solutions over political inertia. The time for action is now.
