‘Don’t think about it’: Housing dream slips away

Australians might be priced out of the housing market, but they don’t want to see using superannuation as a solution, new research shows.

Younger Aussies want practical solutions to the housing market, believing policy announcements will just drive property prices higher.

Mitchell, a 26-year old renter working in the IT department told NewsWire the price of housing has skyrocketed in the last few years, pricing him out of the area where he grew up.

“There were a few times in my life I considered buying a house. One was in 20219 pre-pandemic when I was looking to go in with a mate to get a ground floor unit.

“Then I had a dream of being in the Sunshine Coast where I grew up and the plan was always to settle down and go back there.

“The plan was to turn 30, settle down and go back there. But you can’t find anything for under $800,000-900,000.”

“Where it is now, I don’t even think about it.”

Young Australians want practical solutions to the housing crisis. Picture: NewsWire / Max Mason-Hubers

He believes the current policy by the Coalition will just drive house prices higher while ruining younger Aussies’ chance at retirement.

“Personally I think it’s just kind of doing two bad things at the same time,” Mitchell said.

“The main problem I have with these policies is they help one person at one time but then make it worse for everyone else by driving up the price.

“If everyone at the auction has access to this $50 grand then the house goes up, but this policy also means first home buyers burn their retirement.

The Coalition flagship housing policy will give first home buyers the choice to access up to $50,000 from their super towards a deposit to buy their first home.

Under the scheme, the $50,000 can be initially withdrawn from super but would need to be returned when the house is sold.

Mitchell is not alone with survey results by Everybody’s Home showing 76 per cent of respondents opposed allowing first home buyers to access $50,000 from their superannuation for a house deposit.

According to the results respondents believe the policy will just inflate house prices as well as see their superannuation savings diminish.

Everybody’s Home spokesperson Maiy Azize said people across the country are seeing through the Coalition’s super for housing proposal.

“Voters know Super for Housing could pour fuel to the flames of an already overheated housing market,” Ms Azize said.

“Using superannuation for housing deposits is unfair, and does nothing to build more affordable homes. Instead, it robs people of their retirement savings and drives up house prices for everyone else.”

Everybody Home say the number of renters are on the rise. Picture: NewsWire / Max Mason-Hubers

She said Australians want greater structure reforms over policies that only help a select few.

“We need greater investment in social housing, better protections for renters, and an end to tax breaks for property investors.”

“A growing number of Australians are renting and more than 640,000 people are experiencing rental stress or housing insecurity. These aren’t just numbers - they are real people who are almost entirely missing from the current election debate.

Academics, inducing the University of South Australia the super-for-housing policy would just drive prices up 7 to 10 per cent.

“It is an uncontroversial finding – if you add demand to an inelastic market, prices are going to rise, with the unintended consequence of making housing less affordable” study author Chris Leishman said.

Opposition Leader Peter Dutton said that concern would be addressed by the Coalition’s major “supply side” policy including 500,000 new homes by investing in essential infrastructure, setting a target of 400,000 new apprentices to build houses and reduce migration.

Mitchell called on both parties to commit to policies that will actually help the housing market.

“I would say, think of your kids, but they, you know, they probably got their own bank of mum and dad thing going on,” he said.

“But, think of future generations, you know, think of the country that you grew up in, and don’t you want everyone else to have that chance as well.”