Anthony Albanese has refused to say whether his government wants house prices to rise, fall, or stay flat as Australia’s housing affordability crisis reaches record lows.
Teal Independent Kate Chaney, who represents the WA seat of Curtin, pressed the Prime Minister on the direction of prices under Labor’s housing plan.
‘The average house price has gone from four to nine times the average income in the last 25 years. Locking younger Australians out of a home,’ Chaney asked.
‘If this government is trying to address the housing affordability crisis, are your policies aiming to increase, plateau or reduce house prices?’
Albanese’s response skirted the question entirely.
‘What we’re doing… is increasing that supply,’ he said.
‘We want to provide more social and public housing, point number one. That’s what we’re doing through our Housing Australia Future Fund.
Albanese blamed the ‘Noalition’ and the Greens in the previous parliamentary term for his government’s delayed response to unprecedented demand for housing.
Anthony Albanese (pictured) refused to mention house prices, when asked about them
Pictured is the line to inspect a two-bedroom apartment in Melbourne
‘In addition to that we’re trying to provide more private rentals and doing that through our Build To Rent incentive as well,’ he said.
‘It was blocked in the Senate by the Noalition.’
Chaney made a point of order, noting that the Prime Minister did not address prices, which was the point of her question.
Albanese’s reluctance to talk prices comes as new data shows Australia’s housing affordability has sunk to its worst level in history.
According to the Cotality Housing Affordability Report, the median dwelling value hit $860,529 in September, compared to a typical household income of $104,390.
That pushes the price-to-income ratio to 8.2 nationally, and for houses alone, the ratio is 8.9 times income, up from 6.6 just five years ago.
Since the Covid lockdown of March 2020, home values have climbed an extraordinary 47.3 per cent, adding about $280,000 to the median dwelling price.
House values surged even faster, rising 53.8 per cent in five years, while units increased 27.1 per cent. Meanwhile, median incomes grew only 20 per cent.
Indepedent MP Kate Chaney (pictured) asked the Prime Minister about housing prices
It means saving for a deposit has become a marathon for many first-time buyers.
Nationally, it now takes more than a decade to save a standard 20 per cent deposit, with Sydney buyers facing an average of 16.7 years.
Melbourne sits at 11.2 years, Brisbane at 12.9, and even Perth requires 10.8 years.
Mortgage stress is also at record highs, with almost half of a household’s income, 45 per cent, needed to service a new loan.
Renters aren’t spared either, with the median household spending 33.4 per cent of income on rent, the worst level in two decades.
