Federal Housing Minister Clare O’Neil (pictured) described Australia’s housing market as a source of “agony” for young people struggling to buy a home.
In a conversation on the Savings Tip Jar podcast with hosts Dominic Beattie and Harrison Astbury, O'Neil highlighted the challenges young families face in trying to enter the housing market.
“Younger Australians are facing a radically different housing market than any other generation before you, and it's not fair,” O’Neil said.
She stressed the need for policies that bridge generational gaps in housing access.
O’Neil noted that the issue affects young Australians across various income levels.
“There’s people who are right across the income spectrum who are experiencing really massive pain with housing,” she said.
Rising rejection rates in the rental market and young families locked in rental cycles that previous generations escaped have become a common struggle.
O’Neil also drew attention to rising homelessness, a trend visible in many neighbourhoods and communities.
“The other part of my portfolio that I see this agony is actually a growing share of people who are dropping out of the bottom of the housing market altogether,” she said.
The minister outlined the government’s housing agenda, focused on lowering housing prices. However, she mentioned that traditionally, housing has not been a federal responsibility, which contributes to today’s challenges.
“Commonwealth governments actually haven't taken responsibility for housing,” she said, acknowledging the complexities in reversing the crisis.
O’Neil criticised the opposition’s proposal allowing young people to use superannuation to purchase homes, labeling it a flawed approach. She said it would lead to higher prices without addressing the root causes.
“If all young people have access to their super, then all we're doing is effectively raising house prices by the amount that they can borrow,” O’Neil said, cautioning against policies that would transfer wealth from young buyers to older homeowners.
Listen to the Savings Tip Jar podcast here.
