John Kehoe’s AFR comparison of the 2025 election housing policies quoted Hugh on the constraint that both major parties keep mis-specifying. The greatest barrier for first-home buyers is not loan serviceability. It is the deposit.
“The biggest barrier to first-time buyers is scraping together a deposit, not the subsequent mortgage payments.” That observation cuts against demand-side schemes that make it easier to borrow more for the same scarce stock. If the constraint is equity, not repayments, then policies that inflate prices make the barrier higher.
Originally published in the Australian Financial Review, 14 April 2025.
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