As the Federal Election looms on May 3rd, 2025, one issue stands above the rest for Australian voters: housing. But while affordability dominates headlines, the real challenge extends far beyond simply lowering prices.
At SFP Financial, we work closely with first-home buyers, investors, and rent-vestors who are feeling the pressure of a market shaped by high prices, soaring rents, and fluctuating interest rates. However, the housing crisis isn’t just about affordability, it’s about supply, construction inefficiencies, and the broader policies that determine how and where Australians can live.
A Housing Supply Crisis in Disguise
While many Australians aspire to homeownership, the reality is that demand continues to outstrip supply. The root of the issue? A sluggish construction sector hampered by bureaucratic red tape, restrictive zoning laws, and slow planning approvals.
Even if affordability measures like first-home buyer grants and shared equity schemes provide temporary relief, they don’t solve the core issue: there simply aren’t enough homes being built. Unless governments at all levels address supply constraints, housing affordability will remain a pipe dream for many.
Innovative Solutions: Thinking Beyond Traditional Builds
One way to address supply is through innovative construction methods like modular housing. Unlike the outdated perception of shipping container homes, modern modular construction involves prefabricated sections built off-site and assembled quickly on location. This approach can significantly reduce construction costs and timelines, helping to deliver more housing without compromising quality.
Governments that support and incentivise alternative housing solutions will be better positioned to address the crisis. By streamlining approval processes and reducing unnecessary regulations, policymakers can ensure more Australians have access to secure, high-quality homes.
The Power of Stamp Duty Reform
Financial barriers remain a significant hurdle for first-home buyers. Some states have already taken proactive steps, such as Queensland and South Australia, which have removed stamp duty for first-home buyers purchasing new builds. Expanding this initiative nationwide could provide immediate relief and encourage new construction, increasing overall housing supply.
Stamp duty exemptions for new builds should not be limited by property price caps but instead be designed to stimulate growth across all housing markets. The more new homes built, the more balanced the housing market will become over time.
Tread Carefully with Lending Laws
While relaxing lending laws may seem like a quick fix to improve housing access, history tells us otherwise. Looser lending criteria often fuel demand, pushing property prices even higher. In fact, studies suggest that allowing first-home buyers to access superannuation for deposits could inflate house prices by 7.4% to 10.3%, making housing even less affordable in the long run.
A more sustainable approach would focus on increasing supply and reducing barriers to homeownership through well-targeted policy changes, rather than artificial boosts in borrowing power that ultimately benefit sellers more than buyers.
Australians Want Real Action, Not Empty Promises
Voters are tired of recycled policies that fail to deliver meaningful change. The 2025 election presents an opportunity for real reform. Australians want:
- Faster and more efficient construction approvals
- Stamp duty relief for new builds
- Support for innovative housing solutions
- Long-term supply-driven policies, not quick-fix demand boosts
The party that delivers a comprehensive and practical plan to address these issues will win the trust and votes of Australians.
At SFP Financial, we’re committed to guiding our clients through the evolving property landscape. If you’re looking for expert mortgage advice in an ever-changing market, reach out to us today. The right support can make all the difference in securing your dream home, no matter what the election outcome may be.
