Finally: A Push to Make Australian Homes Affordable

Australia's housing market is the third least affordable on the planet. The situation has reached levels of absurdity in inner-city Sydney and Melbourne, where $1 million has become a benchmark. And all of this means that young people lose out: We can't afford to buy, while rental prices for dilapidated share houses are becoming untenable.

Politicians have been aware of this issue for some time, but have only responded with unhelpful advice such as "get a higher paying job" or "move to the country". But this weekend saw a shift in attitude, with Federal Treasurer Scott Morrison indicating that the 2017 budget will directly address housing affordability, rent prices, and homelessness.

On Sunday, Morrison told Sky News that the reforms would address the housing struggles of all Australians, from "those who are reliant on social housing all the way through to those who are trying to break into the housing market." He indicated that housing would be a key aspect of the budget package, which will be announced on May 9.

"There will be a very strong focus on this in the budget, and it won't just deal with the challenges faced by first home owners," Morrison said. "We've got to remember that over 30 per cent of Australians actually live in homes that are rented. When people are finding it hard to get into the housing market that puts a lot more pressure on the rental market… I'm as much concerned about someone who is on a low income struggling with their rent as I am with someone who I know wants to get into the home ownership market. They're both important challenges."

The Treasurer was light on the details of the reforms—so I guess we'll just have to wait until budget night. And all of this does sound a little too good to be true, especially given Morrison's specific personal history of dismissing the plight of Australian renters and prospective first home buyers. Still, it's nice to contemplate that this year's budget might focus on something other than tax breaks for the rich.

Over the weekend the Victorian government also announced a suite of housing reforms over the weekend that will attempt to cool house prices. From July 1, first home buyers of properties valued under $600,000 will no longer have to pay stamp duty, which is a saving of around $15,000. Then, from January 2018, a vacant property tax will attempt to reduce rental prices, and Premier Daniel Andrews also announced a $50 million pilot scheme that will enable a small group of first home buyers to reduce their housing deposits through "co-purchasing" homes with the government. Last week the Victorian Government also doubled the state's First Home Owner Grant and announced the creation of 17 new outer metropolitan suburbs.

It will be a while before the effects of these new policies are felt, if they are at all—but at least Australian politicians are acknowledging the housing crisis at all.

But just quickly, before we go, a reminder: your Prime Minister is a property mogul who bought his first home for $17,000 while still a student at Sydney University in 1978.

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