Anthony Albanese will unveil a $10bn plan to construct 100,000 homes reserved for first-time buyers, forming the centrepiece of Labor’s federal election campaign launch in Perth. The scheme will allow first home buyers to secure homes with just a 5% deposit, while avoiding expensive mortgage insurance through a government guarantee.
Housing Affordability Takes Centre Stage
The Labor government’s housing pledge aims to directly address Australia’s housing crisis, with increasing property values and stagnant supply exacerbating affordability issues for younger Australians.
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Prime Minister Albanese declared: “I want to help young people and first home buyers achieve the dream of home ownership.”
Key Features of the Housing Scheme
- Eligibility: Open to all first home buyers, regardless of income.
- Deposit Structure: Only a 5% deposit required, with the federal government guaranteeing up to 15%.
- Mortgage Insurance: Avoided through the government guarantee, saving buyers approximately $23,000.
- Property Price Caps: Aligned to average city prices: Sydney ($1.5m), Melbourne ($950k), Brisbane ($1m), Perth ($850k), Adelaide ($900k), Hobart ($700k), Canberra ($1m), Darwin ($600k).
- Program Timeline: Construction begins in 2026–27, with residents moving in from 2027–28.
State Partnerships and Funding Breakdown
The scheme will be delivered in partnership with state and territory governments, which will identify projects and streamline approvals. Funding includes:
- $2bn in grants to states
- $8bn in zero-interest loans or equity investments
These homes are in addition to the 36,000 social and affordable homes planned under the Housing Australia Future Fund.
First Home Guarantee Expansion
The 5% deposit model extends the First Home Guarantee scheme, currently offering 35,000 places annually, to all first home buyers without place or income caps. The government expects around 80,000 of the 110,000 annual first home buyers to participate.
Broader Homes for Australia Policy Goals
Labor has set a broader national target to build 1.2 million homes by 2029. The latest pledge is intended to help meet that goal and stimulate construction across the country.
Housing Minister Clare O’Neil said, “Young Australians are bearing the brunt of the housing crisis, and our government is going to step up to give them a fair go at owning their own home.”
Boosting the Construction Workforce
To support this building boom, the government highlighted workforce training initiatives including free TAFE programs and apprenticeship incentives. These are designed to ensure a steady pipeline of skilled labor for new housing developments.
Opposition Criticism and Concerns Over Targets
The Coalition has criticised Labor for falling short of housing targets. The Master Builders Association and Property Council have warned that current construction rates are far behind the required pace to meet the 1.2 million home promise.
- Master Builders Australia: Only 165,000 homes began construction in the year to September 2024—far short of the 200,000 annual target.
- Property Council Report: Forecasts the government is 462,000 homes behind its goal.
Despite the scrutiny, Labor’s new announcement represents a significant expansion of its housing strategy, aiming to give more Australians a realistic pathway to home ownership while bolstering the national housing stock.
The policy will be formally launched at Labor’s campaign event in Perth, coinciding with the Coalition’s launch in Western Sydney.
