Housing affordability is dominating this election campaign. Higher property prices, limited supply and increasing demand have made it increasingly difficult to enter the housing market. Both major parties have proposed different policy platforms to address housing and while both recognize the need for action, their approaches differ in philosophy, scope, and implementation.

Labor’s housing policy centres around public-purse investment to boost affordability and supply. The incumbent’s approach emphasises support for first-home buyers, increasing social and affordable housing stock, and working in partnership with state and local governments.

The PM announced this week an extension of the successful 5% deposit scheme for first-home buyers that avoids costly lenders’ mortgage insurance. The scheme reduces the upfront cost barrier, particularly for younger Australians and doesn’t cost taxpayers anything unless the buyer defaults – smart, effective policy.

Labor is also leaning into the $10 billion Housing Australia Future Fund and the National Housing Accord, which aims to build 1.2 million new homes by 2029. There is little chance they’ll hit their target, but an aspiration to increase supply demonstrates Labor understands that supply is the heart of the problem of housing affordability.

Meanwhile, the Libs offer a housing policy that incentivises first home buyers and unlocks land through infrastructure investment. If elected, the Opposition would allow first home buyers to deduct their interest payments from their taxable income when buying a new home – a game-changer which can save mortgage holders up to $12,000 a year.

The Liberals are also looking to further invest in infrastructure to free up more land for housing and limit immigration to address demand-side pressures.

Unsurprisingly, Labor’s housing policies target support for buyers combined with long-term public investment in social housing. The Liberals lean toward market-based incentives, infrastructure development, and migration controls to ease pressure on the demand side whilst supporting first home buyers.

Pleasingly, neither party are looking to make changes to negative gearing or capital gains tax settings which would seriously damage rental supply, although the Greens are already making demands to the Prime Minister should a minority government be the outcome after 3^rd May.

Implementation of both major parties’ policies on housing collectively would be seriously impactful – wishful thinking.

Housing affordability is dominating this election campaign. Higher property prices, limited supply and increasing demand have made it increasingly difficult to enter the housing market. Both major parties have proposed different policy platforms to address housing and while both recognize the need for action, their approaches differ in philosophy, scope, and implementation.

Labor’s housing policy centres around public-purse investment to boost affordability and supply. The incumbent’s approach emphasises support for first-home buyers, increasing social and affordable housing stock, and working in partnership with state and local governments.

The PM announced this week an extension of the successful 5% deposit scheme for first-home buyers that avoids costly lenders’ mortgage insurance. The scheme reduces the upfront cost barrier, particularly for younger Australians and doesn’t cost taxpayers anything unless the buyer defaults – smart, effective policy.

Labor is also leaning into the $10 billion Housing Australia Future Fund and the National Housing Accord, which aims to build 1.2 million new homes by 2029. There is little chance they’ll hit their target, but an aspiration to increase supply demonstrates Labor understands that supply is the heart of the problem of housing affordability.

Meanwhile, the Libs offer a housing policy that incentivises first home buyers and unlocks land through infrastructure investment. If elected, the Opposition would allow first home buyers to deduct their interest payments from their taxable income when buying a new home – a game-changer which can save mortgage holders up to $12,000 a year.

The Liberals are also looking to further invest in infrastructure to free up more land for housing and limit immigration to address demand-side pressures.

Unsurprisingly, Labor’s housing policies target support for buyers combined with long-term public investment in social housing. The Liberals lean toward market-based incentives, infrastructure development, and migration controls to ease pressure on the demand side whilst supporting first home buyers.

Pleasingly, neither party are looking to make changes to negative gearing or capital gains tax settings which would seriously damage rental supply, although the Greens are already making demands to the Prime Minister should a minority government be the outcome after 3^rd May.

Implementation of both major parties’ policies on housing collectively would be seriously impactful – wishful thinking.

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