Published by Legislative Council Legal and Social Issues Committee (Victoria)

Given that for most Australians their largest asset is their home – or, for some, a portfolio of investment properties – and it is often tied to long‑term financial plans, measures that are even vaguely thought to threaten property values are treated with ‘extreme caution by our politicians’.

It is also difficult to overstate the importance of continually rising house prices to the Australian economy. In 2022, Australia’s ‘big four’ banks – ANZ, CBA, NAB and Westpac — held around $1.87 trillion in home loans. No other country’s banks are as heavily dependent on residential property with housing in Australia having been referred to as ‘the cash cow of the banking sector’.

Also of interest to the Committee throughout this Inquiry was the way in which property is discussed in the media. Outlets such The Age, for example, flipped daily between stories lamenting housing unaffordability and those celebrating strong growth in property prices. Auctions are reported as if they are exciting sporting contests with results celebrated when they ‘soar’ past reserve prices. Similarly, when the Housing Statement was announced in September, the Australian Financial Review warned that the policies risked dampening house prices, valuing rapid growth in house prices over increased affordability. Housing is a human right, and that fact lies at the heart of Inquiries such as this. All Victorians should be able to access safe, secure, quality and affordable housing. The housing choices that people can make are inevitably shaped by their own circumstances, the  broader nature of the housing system, and our social and economic priorities. One question that this Inquiry has faced is whether we want a home ownership society or a landlord society.9 Victoria, along with the rest of the country, is trending towards the latter. As rates of renting increase, so must security of tenure, liveable rental homes and greater consumer protections. But the goal of home ownership should never be out of reach for Victorians.