This month, housing affordability dominated national headlines and political agendas, as the 2025 federal election loomed and cost-of-living pressures intensified. While both major parties released ambitious new policies aimed at easing entry into home ownership, experts repeatedly warned that demand-side incentives without matched supply-side reforms risk inflaming the crisis further. Across the Sydney market, we saw new data and commentary exposing structural flaws in housing taxation, intergenerational inequality, and policy blind spots — particularly around social housing and homelessness. As median house prices remain out of reach for many, and rental stress worsens, the call for systemic reform grew louder from researchers, economists, and on-the-ground advocates alike.

Election Promises Spotlight Housing Crisis

https://www.domain.com.au/news/federal-election-pass-or-fail-what-is-each-political-party-promising-to-do-for-housing-affordability-1364438/

As the 2025 federal election looms, housing affordability has become a defining issue, with major parties unveiling competing visions. Labor pledges 1.2 million new homes over five years, 100,000 reserved for first-home buyers, alongside reforms to existing schemes like Help to Buy and the First Home Guarantee. Critics argue execution has fallen short, especially with no homes yet delivered under the Housing Australia Future Fund. The Coalition’s headline offer allows first-home buyers to claim mortgage interest as a tax deduction, access super for deposits, and reduce immigration, though experts warn these may inflate prices and do little to address supply constraints. The Greens advocate for a structural overhaul: rent freezes, CGT and negative gearing changes, and a public developer building 360,000 homes. While some praise their bold stance, others call the plans unrealistic or vague. Overall, expert opinion stresses delivery over promises, faster land release, and reduced red tape to truly shift the needle on affordability.

UTS Rowing club, Haberfield

Drone shot of Glebe and Annandale

Styling Secrets to Maximise Property Appeal

https://www.domain.com.au/living/property-stylist-tips-1358693

Property styling plays a crucial role in attracting buyers by influencing how a home feels during inspections. Experts advise starting with a clean and well-maintained exterior to prevent buyers from perceiving the home as high-maintenance. Internally, homes should be well-lit, with every light and blind open to create bright, inviting spaces. Fresh air and subtle scents are preferred over strong fragrances or artificial air fresheners. Decluttering is key – including removing pet items and personal memorabilia – as overcrowded spaces imply poor storage. Contrary to popular belief, larger furniture and rugs make rooms appear more spacious and better suited to families. Finally, visual harmony can be achieved through the repetition of colours and textures, such as matching timber tones across furniture and décor. These subtle but strategic adjustments help buyers emotionally connect with a property and envision themselves living in the space.

Soaring Prices, Stagnant Wages: The Structural Housing Crisis

https://www.domain.com.au/news/not-a-lot-of-political-will-the-unpopular-fix-for-our-housing-woes-1368404/

A Grattan Institute report has spotlighted a worsening imbalance between housing prices and household incomes, revealing that median dwelling prices have more than doubled relative to income over the past two decades. In Sydney, this ratio has grown from 6.3 times to 9.8 times average income since 2001. Economists attribute the crisis to persistent underbuilding, increased borrowing power due to lower interest rates, and rising migration, with calls to increase supply as the only long-term solution. While the federal government aims to build 1.2 million homes under the National Housing Accord by 2029, experts including Brendan Coates and Tim Lawless argue that political will remains weak, regulatory barriers persist, and developer constraints continue to slow progress. AMP’s Dr Shane Oliver supports both boosting unit developments and normalising migration levels as necessary steps to ease pressure. Without a substantial policy shift and expedited construction, affordability is expected to worsen further.

Prestige Rents in Sydney Surpass Average Home Deposits

https://www.domain.com.au/news/the-top-10-most-expensive-suburbs-to-rent-in-australia-their-yearly-rent-is-as-much-as-a-house-deposit-1366582

Domain’s March quarter Rent Report has revealed that Sydney holds all ten of Australia’s most expensive suburbs for house rentals, with median annual rents in elite areas like Dover Heights and Vaucluse now exceeding $145,000 — higher than the average first-home buyer deposit of $131,500. Weekly rents range from $2000 to $2823, but luxury listings can soar as high as $50,000 per week. High-end tenants, often executives or business owners, are drawn to proximity to prestigious schools and lifestyle perks such as waterfront access, large gardens, and au pair quarters. Despite sky-high rents, competition is limited due to the niche demand, with many tenants only leasing short-term during renovations or life transitions. Agents note the growing normalisation of ultra-premium rentals, reflecting a bifurcated market where luxury supply exists in contrast to record-high median rents and rental stress elsewhere in the city.

The Silver Tsunami Reshaping Housing Demand

https://www.domain.com.au/news/how-the-silver-tsunami-is-changing-the-property-landscape-again-1370364/

Australia’s ageing population is transforming housing preferences, with downsizers seeking properties that offer lifestyle continuity rather than compromise. As the national median age approaches 40, architects and designers are reporting a growing demand for homes that retain elements of the family residence—such as light, spaciousness, and entertaining spaces—without the maintenance burden of large blocks. Downsizers increasingly favour freestanding homes or townhouses over compact apartments, seeking features like guest suites, wellness rooms, hobby spaces, and gardens. Experts like Brett Churcher and Kym Lackmann highlight the need for emotionally intelligent design that supports personal routines and identity. However, financial barriers, especially stamp duty, are discouraging many from making the move, limiting housing turnover. With townhouses labelled the “missing middle,” urban planners are being urged to support mid-density developments tailored for retirees. Without structural policy shifts and targeted supply, the downsizer wave may struggle to find suitable housing that aligns with evolving needs.

Property Taxes Under Fire as Housing Crisis Deepens

https://www.domain.com.au/news/tax-not-supply-behind-housing-crisis-expert-slams-45b-property-grab-1374641/

According to James Limnios of Limnios Property Group, Australia’s housing affordability crisis stems not from insufficient supply but from a dramatic increase in property-related taxes, which have surged 80 per cent over the past decade to $45.1 billion. Limnios argues that taxes at all levels—state, local, and federal—are making development prohibitively expensive, particularly for smaller builders. Supporting this view, the Housing Industry Association (HIA) reports that government taxes and infrastructure costs comprise up to half the price of a new home in some regions, with Sydney apartment developments facing charges of up to $346,000 per unit. While political parties focus on stimulating demand through incentives like tax-deductible mortgage interest and reduced deposit requirements, critics warn these policies may inflate prices without addressing fundamental supply issues. Both Limnios and the HIA urge governments to prioritise tax reform over further demand-side stimulation, asserting that housing targets are meaningless unless fiscal barriers to development are addressed.

Property Gains Shift West: Timing and Location Prove Critical

https://www.domain.com.au/news/huge-tailwind-when-you-should-have-bought-a-house-1374643/

New data reveals how vastly different five-year property gains have been depending on purchase timing and location, with Brisbane and Perth delivering the strongest growth since 2020—rising 71.5% and 73.2% respectively. In contrast, Sydney and Melbourne, once dominant during the early 2010s boom triggered by falling interest rates, have since lagged behind, with five-year price increases of 45.7% and just 13.8%. Experts like AMP’s Shane Oliver and SQM Research’s Louis Christopher explain these shifts through a mix of macroeconomic trends, local planning differences, and market-specific factors such as commodity cycles, population movement, and land availability. While buyers often attempt to time the market, analysts caution that long-term performance is cyclical, and what booms now may not last. Rising interest in regional and interstate markets reflects Sydney’s affordability challenges, with investors increasingly seeking value and rental yields elsewhere. The trends highlight that market timing, while difficult to perfect, can significantly influence capital growth outcomes.

Should Prices Fall? The Hard Truth Behind Housing Policy

https://therealestateconversation.com.au/news/2025/04/29/the-uncomfortable-question-the-heart-housing-policy-cotality/1745879967

In a thought-provoking analysis, Cotality’s Eliza Owen questions whether falling home values might actually benefit Australia’s long-term housing outlook. While both major parties continue to propose policies that increase buyer demand, Owen warns that this risks worsening affordability unless paired with supply-side reform. She challenges the taboo around falling prices, noting that a 10% drop would still leave 88.5% of vendors with a profit, and most households financially stable. Historical data from Perth (2014–2019) shows that moderate declines can improve affordability without destabilising the financial system. Yet, falling prices carry economic trade-offs—reducing perceived household wealth, impacting state revenue from property taxes, and affecting sectors tied to housing transactions. Still, Owen argues that sustained price growth fuels inequality and exclusion from home ownership. Instead of relying on short-term incentives, she urges a reframing of housing as essential infrastructure—suggesting that modest price corrections could foster a healthier, more equitable property market.

Housing Crisis Now a Nationwide Struggle

https://www.domain.com.au/news/fighting-for-survival-how-australias-housing-crisis-is-hitting-everyone-hard-1373955/

Australia’s housing crisis is affecting a broad swathe of the population, from low-income renters to aspiring and existing homeowners. Despite earning $130,000 annually, NSW resident Sarah and her husband remain locked out of the housing market, while others like Jill face homelessness due to lack of safe, affordable options. First-home buyers, such as Newcastle’s Bonnie Hanson, are also under pressure—hit hard by interest rate hikes that have doubled their mortgage repayments. Research from CoreLogic confirms that housing unaffordability is at record highs, with high demand, tight supply, and cost-of-living pressures making home ownership increasingly elusive. Policies proposed by both major parties focus on easing entry into the market but critics like LJ Hooker’s Mathew Tiller warn they largely stimulate demand without resolving supply-side constraints. With 31% of households renting and nearly half of low-income tenants at risk of homelessness, the crisis is pushing millions to the brink—making housing one of the most urgent election issues.

Coalition vs Labor: Ambitious Promises, Overlooked Gaps

https://theconversation.com/how-do-the-coalition-and-labor-plans-on-housing-differ-and-what-have-they-ignored-253337

Housing policy has become a centrepiece of the 2025 federal election, with both major parties presenting bold but contrasting plans. The Coalition is proposing a $5 billion infrastructure fund to unlock 500,000 homes and allowing first-home buyers to access $50,000 from super or deduct mortgage interest from taxable income. Critics argue these demand-side incentives risk inflating prices and undermining retirement savings. Labor, meanwhile, is expanding its 5% deposit scheme and launching a $10 billion “Build to Sell” program to commission 100,000 cost-price homes for first-home buyers—reviving a model last seen in the mid-20th century. While this could modestly temper prices by boosting supply, key details remain vague. Crucially, both parties have failed to propose new support for social housing or homelessness, despite surging demand and rising hardship. Analysts also note the absence of serious housing tax reform, with the Coalition’s interest deductibility plan potentially compounding market distortions. In sum, the major parties’ visions differ on execution but share blind spots in addressing affordability’s structural roots.

Conclusion

April’s real estate coverage revealed the stark disconnect between political promises and practical affordability outcomes. While both major parties laid out high-profile plans—Labor focusing on cost-price housing supply and the Coalition on homebuyer incentives—experts cautioned that these initiatives alone are unlikely to resolve Australia’s deepening housing divide. Recurring themes included overstretched renters, younger buyers priced out despite rising incomes, and the mounting pressure on older Australians to downsize in a constrained market. With homelessness rates rising and demand for affordable housing far outstripping supply, the election has sharpened public awareness of the urgent need for bold, long-term structural reform—beyond quick-fix schemes and one-eyed agendas.