The Great Housing Gaslight: How Politicians Spin Australia’s Affordability Crisis

Conor's Corner

"Such an excellent independent view of what’s really happening in Australia right now. The cracks are widening. We need strong independent voices to effect real change."

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Australia is facing a cost-of-living crisis that extends far beyond housing—yet it’s being downplayed and misrepresented by political leaders, writes MacroBusiness. Here’s how the “great housing gaslight” unfolds:

1. A Struggling Reality

Most Australians are trapped in a cycle of financial stress: high mortgages or rents, soaring grocery costs, rising energy bills, and ballooning insurance premiums. Amid this pressure, they’re bombarded with media about foreign extravagance, celebrity headlines, and elite concerns—creating a disconnect between their reality and public discourse.

2. Political Gaslighting

As voters express growing frustration, the newly re-elected government—largely owned by property stakeholders—promises solutions. Politicians like Housing Minister Clare O’Neil attribute the housing crisis to excessive red tape, claiming regulations have made affordable housing “uneconomic.” But are those claims rooted in reality?

3. Productivity vs. Population

Despite political rhetoric, data from the Productivity Commission shows Australia has consistently built detached homes at rates of around 100,000 per year since the 1970s. While targets aim much higher, construction productivity isn’t unusually low—demand, driven by rapid population growth, is the real pressure cooker.

4. The Migration Effect

Recent NHSAC analysis highlights a mismatch: even if supply reached the 1.2 million target, projected demand—pushed by record migration—would still outstrip it by tens of thousands of homes. Therefore, merely blaming builders and regulations ignores the immigration-fueled surge in demand.

5. Calling Out the Spin

Leith van Onselen argues that the “gaslighting” stems from politicians deflecting blame onto builders and bureaucrats, without confronting the elephant in the room: population growth. He asserts that real solutions require acknowledging—and rebalancing—migration to align with housing capacity.

Conclusion

Australia’s housing crisis isn’t the result of builder laziness or stifling regulations. It’s a classic case of gaslighting—where politicians oversimplify the problem to dodge accountability. True solutions demand honest dialogue on migration, construction capacity, and sustainable growth.