Housing Takes Centre Stage in Federal Election But is It Enough?

Australia’s housing crisis has become one of the most critical issues of the federal election campaign, with both major parties under pressure to deliver credible plans for home ownership and supply.

The Real Estate Institute of Australia (REIA) President, Ms Leanne Pilkington said REIA has welcomed the attention, endorsing key commitments that align with its 7-point Election Plan: A Home for All Australians.

“Both major parties firmly recognise that housing is a priority issue for voters.

“This election presents a real opportunity to deliver the long-term policy reform needed to make home ownership a reality for more Australians, the incoming Government will be judged on its ability to turn policy into actual houses.

“While their approaches differ, both Labor and the Coalition are aligned on the objective of increasing home ownership and supporting working Australians. Commitments extend beyond the housing sector, touching on small business support and workforce development to foster broader economic stability and job growth.

“Despite a national agreement to build 1.2 million new homes from mid-2024, the goal remains elusive. The structural issues – underutilised housing stock, planning delays, high construction costs, and inflation – continue to limit progress.”

REIA maintains that while increasing supply is the fundamental solution, support for first home buyers, particularly young Australians, is a key step toward bridging the affordability gap. Both major parties have made commitments in line with REIA’s January recommendations, including expanded access to the Home Guarantee Scheme. 

With multiple demand-style policies on both sides, the result may be upward pressure on prices in certain segments of the market. The incoming Government will need to monitor the cumulative impact on pricing as these policies are implemented.

Labor’s proposals include allowing all first home buyers to purchase with a 5% deposit and spending $10 billion over eight years to build 100,000 homes exclusively for first-home buyers.

The Coalition’s strategy targets ongoing mortgage affordability for first home buyers of new builds through income tax deductions, access to superannuation for all first home buyers, and a review of APRA lending rules. It also includes migration reforms to address economic productivity and housing pressure.

Ms Pilkington said that in contrast, the Greens remain committed to abolishing negative gearing and altering capital gains tax settings, positions that would risk destabilising an already fragile market. Both major parties have wisely committed to maintaining the current settings, recognising the need for investor confidence and a stable housing environment.

“Policy stability is essential,” Ms Pilkington said. “This is not the time to dismantle frameworks that underpin rental supply and investment. We need solutions that build on what works and focus on outcomes.

“REIA stresses that announcements alone are not enough. Real progress will depend on balanced, practical implementation, measurable outcomes, and ongoing accountability.”

To view the full party responses to REIA’s election priorities, visit here.