Federal election 2025: Anthony Albanese forced to defend Labor’s housing policies from criticism

Anthony Albanese has been forced to defend his new housing policies from overnight criticism, but has fallen short of pledging prices would go down under Labor.

The Prime Minister was at a housing construction site in Adelaide on Monday morning, where he was spruiking his announcement to extend the five per cent first home-buyer guarantee scheme and spend $10b to build 100,000 new homes to house them.

Prominent economist Chris Richardson has expressed concern the policy would fuel inflation and fail to grow revenue, and took aim at both Labor and the Coalition’s new offerings as “a dumpster fire of dumb stuff”.

In response, Mr Albanese invited Mr Richardson to the site, saying the economist should see first hand the work being undertaken to alleviate Australia’s housing crisis.

“I’m happy to bring Chris Richardson here, to have a look at the construction and have a look at the jobs that are being created here, and have a look at the economic activity that’s right here,” Mr Albanese said.

“And then I’m happy to bring him back and meet the people who are living here in a home as well.”

Mr Richardson is among several economists who’ve criticised the policies released at the respective campaign launches on Sunday, with the Coalition announcing first-home buyers purchasing new builds will be able to deduct their mortgage payments from their income taxes.

Independent economist Saul Eslake said the rival policies would add further pressure to housing prices, while other economists have criticised both sides for fueling demand rather than increasing supply.

The PM said that Labor’s policy to build 100,000 new homes just for home buyers would address critical supply issues.

Asked how letting first-time buyers get into the property market with a five per cent deposit would not increase demand and therefore increase house prices, Mr Albanese said “what we’re doing is also addressing supply”.

“That is the critical difference between our policies,” Mr Albanese said.

“If you increase supply at the same time as you were doing something about demand, that is the key.”

The PM brushed off concerns Labor could struggle to build the 100,000 homes pledged in its new policy, on top of the 1.2 million homes promised by 2029 under the Housing Accord.

Asked how it’s possible for Labor to ease the housing crisis by building 100,000 houses over eight years while also aiming to help 640,000 first home buyers in that same period, Housing Minister Clare O’Neil said Labor had been working “assiduously” on building homes for three years now.

Ms O’Neil also criticised the Coalition’s housing policy, which she said would do nothing to ease supply and would add further price pressure.

She urged voters to remember Peter Dutton’s pitch to allow homebuyers to dip into their super to buy a property.

“What Peter Dutton wants to facilitate is for young people around the country to ransack their retirements, but it up against each other in auction and effectively gift that money to the older generation who own most of the property,” she said.

“If I was trying to cook up a way to make the housing crisis worse, this is where I would start.

“At the end of the day, we know we need more supply. And that is why Labor’s plan is about support for first home buyers… but the most important thing that we need to do is build more homes more quickly.”