Policy report

Mortgaging our future: the effects of super for housing policies on Australian property prices and financial health in retirement

Retirement savings First home owners Governance of superannuation funds Housing prices Housing markets Superannuation Australia

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
License type:
All Rights Reserved
Access Rights Type: