Australian Housing Policies Face Scrutiny as Election Approaches
Synopsis
Housing affordability stands as a critical issue for many Australians heading to the polls this Saturday. Despite concerns about younger generations being priced out of the market, experts suggest Australian housing policies will likely…
Housing affordability stands as a critical issue for many Australians heading to the polls this Saturday. Despite concerns about younger generations being priced out of the market, experts suggest Australian housing policies will likely continue favoring existing homeowners.
Veteran economist Saul Eslake points to a simple electoral reality: homeowners vastly outnumber first-time buyers in voting power.
"They [home owners] want governments to do things that keep house prices going up, and as both major political party leaders have said, they want house prices to keep going up," Eslake explains.
Numbers Reveal Political Calculation Behind Australian Housing Policies
The voting math explains why parties hesitate to introduce meaningful affordability measures. Australia counts approximately:
- 11 million home owners
- 2.25 million investment property owners
- Over 1 million negative geared investors annually
- Only about 110,000 successful first home buyers each year
Even accounting for unsuccessful aspiring buyers, Eslake estimates "at most 750,000 votes for policies that would restrain the rate at which house prices keep going up" versus "somewhere north of 12 million for policies that would keep the rate of house price inflation going up."
Property Investors See Benefits of Current System
Queensland resident Jason Cox represents those benefiting from existing Australian housing policies. Since 2001, Cox has developed a strategy of property investment involving regular "flipping" for profit.
"You buy a property year one, and then you operate that property for five years, and then you can flip it out," Cox explains. "Our method is to have around about five [investment] properties, and flip one out every year."
Cox operates within a system that rewards property investment through generous tax breaks. Negative gearing allows investors to offset rental property losses against other income, creating significant tax advantages.
Affordability Concerns Cross Party Lines
Despite personally benefiting from current Australian housing policies, even investors like Cox express concern about future generations' ability to enter the market.
Housing affordability has become a prominent campaign issue, yet significant policy differences between major parties remain limited. According to Eslake, both sides continue "shedding crocodile tears for the difficulties faced by those young aspiring home buyers" while proposing policies that effectively maintain price growth.
Electoral Reality Shapes Housing Future
As Australians prepare to vote, the fundamental political calculation remains unchanged: the voting power of those who benefit from rising property values significantly outweighs those struggling to enter the market.
This electoral reality suggests Australian housing policies may continue prioritizing existing owners' interests regardless of campaign rhetoric about affordability. The mathematical advantage of property owners – "even the dumbest of our politicians can, as the Americans say, do that math" – creates a powerful incentive for politicians to protect and enhance property values.
Source
ABC - How housing affordability policies could shift votes at the federal election
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