Do either of the major parties' housing policies actually make sense?

This article has been syndicated from our national masthead, the National Account. Read more here.

🏡 Why it matters: Despite bold campaign promises, the major parties’ housing policies could do more to inflate prices than fix affordability.

🧠 What’s happening:

• The Coalition and Labor are both pitching big housing plans ahead of the election.

• Each party claims to support first home buyers — but economists warn their proposals will actually push prices higher.

👍 The good: Supply-side solutions

Both parties acknowledge the need to build more homes:

• Coalition: $5 billion infrastructure fund to help councils build roads, sewerage, and power for new developments.

• Labor: $10 billion plan to build 100,000 new homes, exclusively for first-home buyers.

Yes, but: While helpful, these are longer-term plays. And the policies making waves are the ones that give people more cash to throw into an overheated market.

👎 The bad: Demand-boosting giveaways

• Coalition

  • Let first home buyers access up to $50,000 from super for a deposit.

  • Allow mortgage interest tax deductions on newly built homes.

  • ⚠️ Problem: That $50K could be worth $500,000 at retirement if left in super (based on 8% compound annual returns over a 30 year period).

  • ⚠️ Higher-income earners benefit most from tax deductions.

• Labor:

  • Let first home buyers purchase with just a 5% deposit.

  • ⚠️ Problem: Risky lending. Critics warn it won’t ease demand and increases financial exposure for the government.

📈 What the experts say:

• CoreLogic’s Tim Lawless estimates these policies could lift house prices by at least 5%. As a “conservative guess.”

• Economist Chris Richardson calls it a “dumpster fire of dumb”, arguing it’s the classic mistake: more money chasing the same number of homes.

🎤 The spin:

• At the ABC debate, both leaders dodged questions about price pressures, focusing instead on supply.

  • Dutton rolled out his son to talk about housing struggles — while quietly admitting Dutton Jr. will rely on the Bank of Mum and Dad.

  • Albanese continues spruiking the benefits, downplaying inflationary risks.

💬 The bottom line:

Australia’s housing crisis isn’t just about access — it’s about policy choices. Right now, both major parties are betting on popularity over prudence. And young Australians dreaming of homeownership? They’re left hoping for more than just good intentions.

🎥 Here’s the full report