Albanese Re-elected: Housing Plans for Australia's Future

Australia has elected the ALP for another three years of government. With housing being a critical issue for voters in the lead-up to the election, what can we now expect from the re-elected Albanese government?

After 18 million Australians cast their votes on Saturday (3 May 2025), the Australian Labor Party (ALP) and Prime Minister Anthony Albanese secured a decisive victory, forming the 48th Parliament of Australia in what analysts have described as a landslide win.

Albanese's success marks the first back-to-back re-election since former Liberal Prime Minister John Howard's era two decades ago. Major news outlets projected a Labor victory around 8:30pm AEST on Saturday, with opposition leader Peter Dutton conceding defeat an hour later after losing both his Dickson electorate seat and the majority vote.

Throughout the campaign, both Labor and the opposition placed significant emphasis on Australia's housing crisis, each promising comprehensive solutions. With Labor retaining power, here's what their housing agenda looks like:

First Home Buyer Initiatives

The Labor government has announced a major revision to the First Home Buyer Guarantee (FHBG), enabling all first home buyers to purchase property with just a 5% deposit without paying lenders mortgage insurance (LMI).

The Prime Minister confirmed this enhanced initiative will have no caps on places or income, while offering higher property price limits (specific limits yet to be determined).

This represents a substantial expansion from the current FHBG scheme, which is limited to 35,000 places annually and only available to single applicants earning under $125,000 or couples with combined incomes up to $200,000.

Additionally, Labor has pledged a $10 billion investment to deliver 100,000 new homes in partnership with state developers, created exclusively for first home buyers.

The government will also continue the Help to Buy shared equity scheme, with increased income and property price thresholds as outlined in the 2025-26 federal budget.

Housing Supply Strategy

Labor remains committed to its National Housing Accord target of building 1.2 million homes by 2029. The government will fast-track implementation of a national Housing and Homelessness Plan to align policies across all levels of government to increase housing supply.

To ease market pressure while boosting supply, the Labor government has imposed a temporary ban on foreign purchases of established homes, effective from 1 April 2025 to 31 March 2027, with a scheduled review to determine if the policy should continue.

The government has also confirmed it will maintain existing tax settings that support investment in build-to-rent developments.

Furthermore, the Housing Australia Future Fund (HAFF) and National Housing Accord Facility (NHAF) will continue operating. These investment funds, legislated in late 2023, aim to deliver a combined 30,000 social and affordable homes.

Industry Response

Mark Haron, Executive Director at Connective, noted that the election reflected the "urgency Australians feel around housing" and emphasized that focus must now shift from "promises to delivery."

"While Labor's proposals, including the expanded First Home Buyer Guarantee and Help to Buy scheme, offer some relief, they miss the mark in addressing deeper structural issues driving affordability and access," Haron said.

"The government's $10 billion commitment to build 100,000 homes for first home buyers is a welcome long-term initiative - but those homes will not be available overnight. What we need now is immediate, coordinated action to relieve the pressure facing buyers today through better access to finance, smarter planning and supply-side support."

Haron added that mortgage brokers are "on the front line" of this challenge and will continue playing a pivotal role in helping borrowers navigate a tightening credit environment.

HIA Managing Director Jocelyn Martin urged the re-elected government to "make housing a first-order priority from day one," warning that "any delay or political grandstanding will only deepen the nation's housing crisis."

"Access to a home -- whether to rent or own -- is becoming unattainable for too many Australians. This is a challenge that demands a major response in the first days and weeks of the new term of government," Martin said.

"HIA has been clear throughout the election campaign that all sides of politics must provide bold and courageous leadership to deliver on the nation's critical housing shortages and meet the National Housing Accord target of 1.2 million new homes."

Property Council Australia CEO Mike Zorbas stated the PCA looks forward to working with the federal government to "address the immediate challenges ahead for our nation."

"The returning government is well aware of those challenges," Zorbas said. "Better planning our capital and regional cities and providing the homes and industrial and commercial property assets the nation needs is a high priority for the government."

"Beyond this, pro-investment settings that attract overseas money to build our future city assets must be a priority for both the federal and state governments over the next term."

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