As Australia teeters on the brink of a housing crisis, the government faces mounting pressure to address the issue. With house prices skyrocketing and waitlists stretching for years, experts say that radical change is needed – but what does each party promise?
The Looming Housing Crisis In Australia
The inability of public housing to meet demand has tipped some into homelessness, while climate change has made many areas increasingly unliveable.
Homelessness is a complex issue affecting millions worldwide.
According to the United Nations, over 570 million people live in informal settlements or slums, lacking access to basic amenities like clean water and sanitation.
In the US alone, over 550,000 individuals experience homelessness on any given night.
Homelessness can result from various factors, including poverty, lack of affordable housing, mental illness, and domestic violence.
Addressing this issue requires a multifaceted approach, involving government policies, community engagement, and social services.
Australians are struggling under cost-of-living pressures and bracing for the effects of Donald Trump‘s global tariff war. With less than a month until the federal election, housing remains among the top issues for voters. The country’s two major parties – Labor Party and Liberal-National Coalition – have both pledged to tackle the crisis in various ways.
Housing has undergone significant transformations throughout history.
From ancient civilizations' mud-brick homes to modern skyscrapers, the concept of housing has adapted to technological advancements and societal needs.
According to the United Nations, 1.6 billion people worldwide live in informal settlements, highlighting the ongoing struggle for affordable and secure housing.
The average person spends over 30% of their income on housing costs, emphasizing the importance of accessible and sustainable living spaces.
The scarcity of homes in Australia is largely due to the inability of public housing to meet demand, compounded by restrictive planning laws that prevent homes from being built where most people want to live. This has resulted in a steady decline of public housing and ballooning waitlists, making matters worse.
Public housing refers to government-owned and subsidized residential properties provided to low-income individuals and families.
These programs aim to address affordable housing needs, particularly in urban areas where market rates are often unaffordable.
According to the US Department of Housing and Urban Development (HUD), public housing accounts for approximately 1% of the total housing stock in the United States.
Public housing comes in various forms, including high-rise apartments, single-family homes, and community land trusts.
The goal is to provide safe, decent, and sanitary living conditions for those who cannot afford private market rates.
Climate change has also made many areas increasingly unliveable, with natural disasters such as bushfires and severe storms destroying large swathes of properties. The ideal of owning a home, once seen as a right in Australia, has turned into an investment opportunity due to decades of government policies that have commercialized property ownership.
The situation is dire, with house prices in Sydney currently the second least affordable city in the world to buy a property, and across the nation’s capital cities, the combined average house price sits at just over A$900,000. House prices in Australia overall have jumped 39.1% in the last five years, and wages have failed to keep up.
Rents have also jumped across Australia‘s major cities, with Sydney topping the charts with a median weekly rent of A$773, according to CoreLogic‘s latest rental review. The rental market has provided little relief, with rents increasing by 36.1% nationally since the onset of Covid – an equivalent rise of A$171 per week.
Experts say that immigration and foreign property purchases are not significant contributors to Australia’s housing crisis statistically. Many people who move to Australia are temporary migrants, such as international students, who live in dedicated student accommodation rather than entering the housing market.
The year the Australian Dream died
Australia is becoming more unliveable due to climate change, with natural disasters and extreme weather conditions destroying properties and making areas increasingly unliveable.
What have Australia’s major parties promised?
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Labor has announced a A$33bn housing investment plan, which pledges to help first-time homebuyers purchase properties with smaller deposits through shared-equity loans.
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The Coalition has vowed to unlock 500,000 homes, while also cutting migration and reducing the number of international students.
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The Greens have focused on alleviating pressures on renters by calling for national rent freezes and caps.
The experts say that both Labor and the Coalition‘s policies are steps in the right direction but neither is sufficient to solve the housing problem. A combination of both parties’ platforms would be better than what we’re seeing from either side individually.
