On Sunday, Labor kicked off its federal housing campaign in Perth. They are hoping to make a dent in the perennial housing crisis faced by so many Australians. Prime Minister Anthony Albanese led the launch, where he unveiled a commitment of an additional $10 billion for new homes. This announcement is one piece of a larger strategy to help first-home buyers and boost housing supply.
Aside from the funding pledge Labor committed to a loan guarantee program targeted at first-home buyers. The programme allows homebuyers to purchase a property with as little as a 5 percent down payment. This makes a huge difference in the financial barriers that so many Americans face when trying to join the housing market.
Ambitious Agenda
During the launch, Housing Minister Clare O’Neil described Labor’s housing agenda as “the boldest and most ambitious” in the post-war period. She stressed that the changes being proposed are aimed at having a “big” impact on the availability of housing.
O’Neil doesn’t think such initiatives will have much of an impact on overall house prices across the country. In the end, she says she’s not worried about market conditions being upended by the shifts. Yet, this assertion has already led some economists and housing policy experts to debate the long-term dangers that any such government interventions might present.
Opposition Perspectives
Shadow Minister Michael Sukkar prepping for an all voters Q+A session in Berwick, Victoria suburb of Melbourne. He strongly and openly opposed the government’s position. He bragged that their policies are “deliberately engineered to bring new homes into production” so that they don’t create upward pressure on property values.
Independent MP Zali Steggall has lambasted both major parties for sidestepping the important conversation on the need for a broader tax reform. Steggall even suggested introducing tax incentives to help first home buyers. This is a big deal – in one fell swoop, it relieves so much pressure in the housing market.
“We have to have that difficult conversation.” – Zali Steggall
Economic Concerns
Our ongoing debate about what primarily drives housing policy has attracted the attention of a number of prominent economists. One of those economists called some of the proposed policies a “cruel hoax.” He contended that small carrots aren’t going to fix the structural problems that have long been infecting our housing market.
A concerned voter expressed skepticism during the Q+A session, stating that the policies “seem fraught with risk,” reflecting the uncertainty many Australians feel about the effectiveness of these initiatives.
As these discussions develop, both parties have trusted majorities. They need to show their plans to take on the housing crisis are in touch with what voters want before they go to the polls next fall.
