Since 1999, residential property values have surged by roughly 400 per cent, a rate more than double the growth of average household incomes, thereby eroding the purchasing power of first‑time buyers.

Compounding the affordability crisis, the construction sector now delivers new dwellings at about half the productivity recorded three decades ago, a slowdown that throttles supply even as demand intensifies.

Treasury analyses also pinpoint investor‑focused tax concessions—most notably negative gearing and the 50 per cent capital gains tax discount—as pivotal in inflating the proportion of housing stock held by investors, consequently diminishing the pool of homes available to owner‑occupiers.

In response, the Chalmers government has introduced a suite of housing‑tax reforms and productivity‑boosting measures, arguing that these “substantial political risks” are necessary to meet intergenerational obligations and to prevent the housing market from permanently excluding younger citizens.

The convergence of soaring prices, dwindling construction efficiency, and policy‑driven investor dominance not only widens the wealth gap between generations but also poses a formidable challenge for policymakers seeking to restore equitable access to homeownership.