Saying there’s an upside to falling house prices is sacrilege. But Labor needs to admit it

July 1, 2026 — 3:14pm

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Politics and Australia’s real estate market are not the place to look for consistency.

In October last year, as the Albanese government expanded its 5 per cent deposit scheme for first-time buyers, the fear – from the Coalition, from property experts, from the media – was that it would drive up house prices.

“You’ve got everyone basically besides Treasury saying this is going to whack prices up, so people will be at a disadvantage,” Housing Minister Clare O’Neil was told by a Channel Seven interlocutor on the morning of October 1.

Fast forward to June 30, and Treasurer Jim Chalmers was asked by Channel Nine about the “fairness” of falling house prices.

“What about the 10 million people that own homes in Australia, because that would suggest this isn’t fair for them,” he was asked.

House values fall – but homes are not getting more affordable

No matter in which direction house prices move – and they do move in either direction – everyone has an opinion on whether it’s “bad” or “good”. Facts, sadly, are few and far between.

This is where 30 to 40 years of Australian tax, banking, financial services, migration and urban planning policy has got this........

© The Sydney Morning Herald