Australian house prices: Why are they so high?

Australia's housing crisis has hit its worst point in decades, becoming a key issue in the upcoming election.

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With less than a month until the federal election, housing remains among the top issues for voters, and the country's two major parties – the Labor Party and the Liberal-National Coalition - have both pledged to tackle the crisis in a range of ways.

Australians are already struggling under cost-of-living pressures and bracing for the effects of Donald Trump's global tariff war. And it remains to be seen whether either party will sway voters with their promise of restoring the Australian dream.

Simply put, Australia has not been building enough homes to meet the demands of its rapidly growing population, creating a scarcity that makes any available home more expensive to buy or rent.

Compounding the issue are Australia's restrictive planning laws, which prevent homes being built where most people want to live, such as in major cities.