Australia's Prime Minister Anthony Albanese attends the 2025 Global Progress Action Summit in central London on September 26, 2025. The meeting in London is expected to include world leaders including Australian Prime Minister Anthony Albanese and Canadian premier Mark Carney. (Photo by HENRY NICHOLLS / AFP) (Photo by HENRY NICHOLLS/AFP via Getty Images)
URGENT UPDATE: Home buyers across Australia are expressing outrage following the implementation of a controversial 5 percent deposit scheme that has sent housing prices soaring by as much as $100,000 in mere days. This dramatic price increase has left many young Australians feeling trapped in a housing crisis, exacerbated by mass migration policies initiated by the Albanese government.
Just two days after the scheme’s rollout on October 4, 2025, critics have slammed the policy for making homeownership even less attainable. Previously, first-time buyers needed a 20 percent deposit to enter the market. Now, the government’s initiative allows them to secure a mortgage with just 5 percent down, ostensibly to ease entry barriers. However, this has instead sparked fears of a housing bubble and further increased the burden on renters.
Housing experts and economists warn that this policy could lead to reckless borrowing, driving financial instability among young Australians already struggling under the weight of soaring living costs. Notably, Senator Pocock stated, “These are predatory prices. They’re not being driven by demand, they’re driven by speculation,” emphasizing that the government’s actions prioritize wealthy investors over everyday citizens.
The backlash is not just coming from young buyers; even within the Labor Party, dissent is growing. Some members are questioning the wisdom of encouraging young people to take on massive debts in an already strained housing market. Critics argue that this approach fails to address the core issues of supply and demand, and instead fuels a speculative frenzy that benefits a select few.
In a joint statement released earlier this year, Anthony Albanese and Clare O’Neil, Minister for Housing and Homelessness, touted the policy as a solution to the housing crisis. Yet, with house prices now spiking, many are left wondering if this government initiative was truly in the best interest of first-time buyers. It raises the question: did voters even support this policy, or was it hidden beneath other electoral promises?
As the housing market continues to react, young Australians face an uncertain future. With predictions that rents will follow suit and escalate due to the influx of buyers, many are left feeling disillusioned. The government’s promise to assist is perceived as a double-edged sword—one that may deepen the economic struggles of the very demographic it aims to help.
WHAT’S NEXT: Analysts warn that if property prices keep climbing, first-time buyers could be pushed out of the market entirely, creating a generation of renters unable to secure homes. As the situation develops, all eyes will be on the government’s next steps and whether they will reconsider their approach to housing policy.
Stay tuned for further updates as this story evolves, as the implications for young buyers and the overall economy become clearer. The urgency of the housing crisis in Australia continues to escalate, with many now questioning if the government can effectively address the growing discontent in the home-buying community.
