Policy report
Mortgaging our future: the effects of super for housing policies on Australian property prices and financial health in retirement
Publisher
Retirement savings
First home owners
Governance of superannuation funds
Housing prices
Housing markets
Superannuation
Australia
Resources
Description
This report examines the effects of ‘super-for-housing’ policies on house prices, finding the proposal would significantly increase house prices in all major capital city markets in Australia, but do so without changing the composition of first home buyers.
This report also considers the effects of ‘super-for-housing’ on household indebtedness and wealth, finding that in most instances keeping superannuation untouched will lead to a more prosperous future for individuals.
Key findings:
- Australian governments have long favoured demand-side interventions in the housing market, which have resulted in higher prices but have not necessarily led to higher rates of home ownership.
- Allowing prospective buyers to access between $10,000-30,000 in superannuation savings to allocate towards a house deposit would have no material impact on the overall rate of home ownership.
- Allowing prospective buyers to access $60,000 and above in superannuation savings to allocate towards home ownership would see more prospective buyers transition to home ownership, but place significant inflationary pressure on house prices in Australia’s major cities.
- In addition to inflating house prices, super-for-housing would lead to increased household indebtedness.
Related Information
Housing affordability and superannuation https://apo.org.au/node/317849
Publication Details
Copyright:
The McKell Institute 2021
License type:
All Rights Reserved
Access Rights Type:
open
Post date:
15 Dec 2021