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Housing Policies of the Major Parties going into the 2025 Election
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A steady upturn is developing in Australia's residential building sector. Macromonitor expects dwelling starts to rise by 10% in 2025, and 15% in 2026, as outlined in our new report, Australian Construction Outlook – Residential Building. High population growth, cuts to interest rates and supportive government policies are all playing a role in driving the recovery.
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The housing policies announced by the major parties going into this weekend's Federal election lend support to this outlook of a substantial upturn.
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- Invest $10bn in the Build to Sell program to build up to 100,000 homes in eight years reserved only for first home buyers,
- Continue the Housing Australia Future Fund to help build 30,000 affordable homes within five years, with two-thirds of new developments designated for social housing.
- Expand the first home guarantee scheme to all first home buyers, allowing people to secure a home with only a 5% deposit and avoid mortgage insurance.
- Help to Buy scheme, a shared equity scheme, the government will loan 30% of the purchase price of an existing property, or 40% of a new build, for those eligible who earn less than $90,000.
- Offering construction apprentices a $10,000 cash bonus, and employers of various key trades can get $5000 under the Priority Hiring Incentive.
- Allow first home buyers to access 40 per cent of their superannuation, or up to $50,000, for a home deposit.
- Allow first-time buyers of newly built homes to claim mortgage payments as an income tax deduction for five years, up to the first $650,000 of a mortgage on a new-build.
- Freeze the national construction code for a decade.
- Pledged to work with financial regulators to change lending rules to help young Australians access a mortgage, including reducing the serviceability buffer.
- Creation of a new national network of Australian Technical Colleges to fast-track students to jobs in construction. The Coalition has promised to provide $12,000 to small and medium business to help hire a new trainee or apprentice, with a focus on construction.
- In February 2025, the Labour government announced it would impose a temporary ban on foreign persons, including temporary residents, buying established dwellings for two years, to 31 March 2027. The Coalition has also committed to this ban. Note, this will not stop this cohort from investing in newly built dwellings.
- Both Labour and the Coalition have committed to no changes to negative gearing or capital gains taxation.
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Policies of the major parties are supportive of Macromonitor's forecasts of a steady upturn in Residential Building though to 2027.
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Our most recent reports:
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Australian Construction Cost Trends
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This report examines the outlook for construction costs, in detail be sector and type of input.
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Australian Construction Projects Database
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This latest list of projects corresponds with our fully revised set of forecasts published in November 2023.
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Australian Regional Construction Outlook
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Our latest regional forecasts for residential building and construction have just been released.
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Australian Construction Materials Forecasts
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Our latest forecasts assess the implications for construction materials demand of the current outlook for building and construction.
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Australian Road and Bridge Works
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This report examines the strength and composition of the current upturn, and determines the likely timing of the peak, and subsequent decline.
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