For decades, Australian culture has been deeply intertwined with the idea of property ownership as a path to wealth. Homeownership has long been seen as a “must-do” life goal, a financial milestone, and a symbol of success. But in recent years, a quiet yet profound shift is occurring in the public consciousness. Increasingly, Australians are coming to the view that housing should primarily be about having a safe, secure place to live — not a speculative vehicle for making money.
This shift isn't just a matter of opinion; it's being driven by affordability pressures, housing insecurity, and a growing awareness of social inequality. For many Australians, the dream of homeownership is no longer a reality but a far-off fantasy. The cost of housing has skyrocketed, leaving a generation of renters locked out of the market. Against this backdrop, a rethinking of housing's role in society is underway.
The Rise of Housing as a Commodity
The idea of housing as a wealth-building tool took off in the 1990s and 2000s, fueled by government incentives like negative gearing and capital gains tax discounts. Investors flooded the property market, pushing up prices as they competed with owner-occupiers. For a time, it seemed everyone was chasing the dream of “buy, hold, and profit.”
This mindset turned homes into speculative assets rather than essential shelter. Property prices soared, and housing became one of the most lucrative ways to build wealth in Australia. Entire TV shows were dedicated to flipping houses for profit. Investment properties became the norm, with some individuals owning multiple properties while others struggled to rent.
But as property values increased, so did the barriers to entry for first-home buyers. Housing affordability declined, rental costs surged, and homelessness rates grew. For younger generations, the dream of homeownership became more of a fantasy than a reality.
Why the Shift Is Happening Now
- Affordability CrisisProperty prices in major Australian cities like Sydney and Melbourne have reached astronomical heights. CoreLogic data shows that house prices have more than doubled in the past two decades, with median prices now exceeding $1 million in many areas. Wages, however, have not kept pace.
As affordability declines, more people are being locked out of the property market. First-home buyers face fierce competition from investors, who often have the advantage of equity from existing properties. With rising rents, it’s also harder to save for a deposit. Many Australians are coming to the view that housing should not be a financial lottery that some win and others lose.
- Housing Insecurity and Rent StressRenters have borne the brunt of the affordability crisis. As property prices rise, so do rents, putting many tenants under “rent stress” — defined as spending more than 30% of household income on housing. Rental vacancy rates have plummeted in many areas, with tenants scrambling for available properties. The threat of eviction looms large, especially for those in short-term leases or those affected by landlords selling their investment properties.
This insecurity has prompted many Australians to question the role of housing in society. If housing is primarily an investment vehicle, tenants remain vulnerable. If it’s treated as essential shelter, however, there’s a stronger case for rental protections, longer leases, and more affordable housing supply.
- Changing Attitudes Toward Wealth and WellbeingYounger generations, particularly Millennials and Gen Z, are driving a cultural shift in how wealth and success are perceived. Many are less focused on “owning stuff” and more interested in experiences, stability, and well-being. The stress of housing insecurity has made the idea of “a place to call home” more appealing than the allure of speculative wealth.
Younger Australians are questioning whether it makes sense to see housing as an investment at all. Unlike stocks or crypto, people actually live in homes. Calls for a return to the idea of housing as a human right — not a commodity — have gained traction in recent years.
The Role of Government Policy
Government policy has played a critical role in shaping the housing market, and many Australians believe it’s time for a reset. Tax incentives like negative gearing and capital gains tax discounts have favored investors, not first-home buyers. Critics argue that these policies distort the market, encourage speculation, and drive up prices.
There’s growing support for policies that prioritize housing as a human right. Proposals include:
- Building more social and affordable housing: Increasing the stock of social housing could provide low-income Australians with a stable place to live.
- Restricting negative gearing and capital gains tax discounts: By curbing incentives for property investment, the government could reduce speculative demand.
- Renters’ rights reforms: Many advocate for stronger rental protections, such as caps on rent increases, longer-term leases, and eviction protections.
- First-home buyer support: Grants, shared-equity schemes, and deposit assistance programs are designed to help first-home buyers enter the market.
While these proposals have faced resistance from vested interests, they represent a growing recognition that housing’s primary role should be to provide shelter — not act as a cash cow for the wealthy.
The Ethical Argument for Change
Beyond economics, there’s an ethical dimension to the housing debate. If housing is a basic human need, should it be treated as a commodity that’s bought and sold for profit? Critics argue that it’s unjust for people to be homeless or housing-insecure in a country as wealthy as Australia.
This argument has gained ground, especially in light of the COVID-19 pandemic. The crisis highlighted how essential stable housing is to health and well-being. Lockdowns exposed the precarity of renters’ lives, with many facing eviction due to job losses and rental stress. It also revealed the potential for swift government action, with emergency measures introduced to protect tenants.
As awareness of social inequality grows, more Australians are backing the idea that everyone deserves a place to call home — regardless of their income or financial acumen.
What Does the Future Hold?
The shift in attitudes toward housing is unlikely to reverse. Housing affordability pressures, generational changes, and the ethical case for reform all point to a long-term rethinking of how Australia approaches housing. While property speculation may never disappear entirely, the idea that “housing is a home first, and an investment second” is becoming more mainstream.
Future housing policy may increasingly reflect this shift. As more people demand stronger renters’ rights, affordable housing, and limits on investor speculation, governments may be forced to act. If they do, housing could once again be seen as a human right — a safe, secure place to live — rather than a wealth-building scheme.
Final Thoughts
Australia’s housing market is at a crossroads. The old narrative of “buy property, get rich” is being challenged by a new, more human-centered perspective: housing as a fundamental need. For many Australians, this shift can’t come soon enough.
If this change becomes entrenched, the country’s housing policies, market structures, and social attitudes may all transform. It’s a shift from individual wealth accumulation to collective well-being — a shift that could make Australia’s housing system fairer, more just, and more secure for everyone.
