Australian renters hoping for relief from soaring housing costs have been dealt a blow, with both Labor and the Coalition rejecting rent caps despite growing calls for tougher regulation.
Housing Minister Clare O’Neil and shadow attorney-general Michaelia Cash ruled out the measure during an appearance on Sunrise on Wednesday morning, but clashed over who was responsible for Australia’s worsening housing affordability crisis.
Asked whether the Albanese Government would consider rent regulation, Ms O’Neil acknowledged renters were struggling but warned the policy could ultimately make the situation worse.
“Well, Nat, renters are doing it really tough, right around the country, right now, and our government’s massive housing agenda is all about getting them into a better position.”
Ms O’Neil argued that restricting rental prices could discourage property investment and reduce the number of homes available to tenants.
“The effect would be landlords taking their homes off the market, reducing our rental stock, and we wouldn’t see the investment in building new homes that we really need.”
Instead, she insisted increasing housing supply was the only sustainable solution to Australia’s affordability crisis, which she attributed to decades of insufficient construction.
“I really agree that housing is too expensive in Australia, but we have to do this the hard way, and that is building more homes for our country.”
The Housing Minister pointed to federal investment in construction, land availability and workforce development, claiming progress was already being made.
“There’s actually more homes under construction in Australia right now than there has been since records started to be kept on this.”
However, Senator Cash argued the government’s approach had failed renters, accusing Labor of allowing migration to outpace housing construction.
“Australian renters are now paying the price for the Albanese government’s housing crisis.”
She claimed annual home construction had fallen from about 200,000 properties under the Coalition to approximately 170,000 under Labor.
While agreeing that rent caps were not the solution, Senator Cash said the government needed to address population growth and rising building costs.
“Red caps are not the answer. Why, they do not build a single new home.”
The Coalition has proposed reducing migration numbers, with Senator Cash outlining a plan to cut arrivals by 100,000 over each of the first two years.
She argued that slowing migration while making construction cheaper would ease pressure on Australia’s stretched rental market.
The exchange exposed a key divide between the major parties over the causes of the housing shortage, despite their shared opposition to rent caps.
For renters facing mounting weekly costs, however, neither side offered an immediate rent-control measure, instead pointing to longer-term changes in housing supply as the path to affordability.