Will the Federal election policies fix the housing crisis? Alan Kohler says policies will drive up housing prices in 2026.

Transcript

We’ve learned a couple of things in this election campaign. First both parties think housing is the main issue and second they don’t think they can fix it, not while they’re around anyway.

So they’re offering first home buyers ways around it. Not renters, mind you, just buyers.

The Coalition is doing tax deductibility of mortgage interest and access to super for deposits.

Labor is doing 5% deposits and help to buy, which is where the government owns a bit of the house.

Both policies will tend to push prices up and make housing less affordable.

As for the basic problem – there just needs to be more supply and less demand.

Neither party has much to say about demand apart from that of first home buyers of course and are focusing on supply.

Labor is spending more on that $10 billion in new grants and loans and the existing $10 billion Housing Australia Future Fund.

Both are designed to subsidize new building Versus the Coalition’s $5 billion for infrastructure.

None of it is enough to stop prices rising especially with four or five rate cuts coming thanks to Donald Trump and the trade war.

So housing will be less affordable next year but first home buyers might get on the bottom rung of what is still going to be a property ladder.



16 April 2025