Australia’s Housing Crisis Takes Center Stage in Election Countdown

As Australia grapples with skyrocketing housing prices and rental costs, both the Labor Party and the Liberal-National Coalition have vowed to implement strategies to alleviate the crisis. However, experts suggest that their proposals may not suffice to tackle the deeper issues at play.

Australia's housing market is spiraling into a crisis as the impending federal election highlights the struggle faced by many Australians to afford a home. Driven by soaring property prices, skyrocketing rents, and insufficient social housing, the average citizen is experiencing an unprecedented affordability issue. With just weeks left before voting day, housing has emerged as a pivotal topic among voters, compelling the leading parties—Labor and the Liberal-National Coalition—to propose remedies to restore the beleaguered “Australian Dream.”

Many experts point to a fundamental lack of housing construction to meet the needs of the rapidly growing population. This scarcity is intensified by restrictive planning laws that hinder the development of new homes in desirable urban areas, particularly in cities like Sydney and Melbourne. Compounding the problem is the decline of public housing, which has led to increased waitlists and a rise in homelessness or overcrowded living situations.

Natural disasters exacerbated by climate change, including bushfires and severe storms, have further rendered many areas unlivable. Consequently, decades of government policies have shifted the notion of home ownership from a basic right to a lucrative investment.

According to the 2023 Demographia International Housing Affordability survey, Sydney ranks as the second least affordable city globally, with average home prices nearing A$1.2 million. Moreover, national data reveals that urgent measures are needed as rent has surged by 36.1% since the pandemic began, leaving many Australians struggling to keep up.

While immigration and foreign property buyers are frequently blamed for the housing shortage, analyses suggest that their impact is minimal. Temporary migrants, such as international students, typically do not contribute to the housing demand, and foreign buyers account for less than one percent of all home sales, according to recent Australian Taxation Office findings.

Both major political parties have proposed plans to build more homes, although their commitments vary significantly. Labor has pledged to deliver 1.2 million new homes by 2029, alongside a substantial A$33 billion investment aimed at assisting first-time homebuyers with smaller deposits. The Coalition has committed to creating 500,000 housing units while seeking to curb migration and restrict foreign investment in existing properties.

The Greens party advocates for immediate rent control measures to support current renters and aims to reform tax incentives for property investors in the event of a minority government.

However, experts warn that the political solutions being offered are inadequate for resolving the significant challenges at hand. Critical assessments suggest that both parties' plans fall short of delivering the comprehensive changes necessary to effectively address the longstanding issues in the housing market.

Notably, a 2025 report by the Urban Development Institute of Australia indicates that the government is on track to miss its housing goals, with a projected shortfall of approximately 400,000 units. The Coalition's proposal to limit immigration may offer marginal improvements in housing affordability, but experts caution it could hinder economic prosperity long-term.

As the nation prepares to cast its votes, analysts emphasize that the attention being drawn to Australia’s housing dilemma is a crucial step towards confronting a crisis that has been neglected for far too long.