High earners flood Australia's 5% deposit scheme, pushing up home prices

Australia's government-backed first home guarantee scheme, which requires only a 5% deposit, is increasingly used by high-income earners, with one in three new participants earning over A$200,000 a year. Since Labor removed income caps, economists warn the scheme is pushing up property prices by boosting buying power for people who would have entered the market regardless. Critics argue it addresses demand without solving the underlying housing supply shortage.

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📈 Business Australian house prices dip but have more than doubled in a decade The Guardian World · 22d ago 📈 Business House prices fall in four Australian capital cities — Sydney down A$48,000 this year The Guardian World · 29d ago 📈 Business Wealth gap between homeowners and renters hits an all-time high NPR Business · 1d ago

More on this topic

📈 Business Australian house prices dip but have more than doubled in a decade The Guardian World · 22d ago 📈 Business House prices fall in four Australian capital cities — Sydney down A$48,000 this year The Guardian World · 29d ago 📈 Business Wealth gap between homeowners and renters hits an all-time high NPR Business · 1d ago