A leading economist has given a blunt explanation as to why theelection promises of the two major parties will do nothing to help young Australians afford their first home.
The Australia Institute executive director Richard Denniss argued on the ABC's Q&A program on Monday that Labor and the Coalition's policies such as tax breaks for first-time buyers only benefit current property owners by pushing up prices even more, and described them as a 'cruel hoax'.
Frustrated viewer Georgia Haysom told the panel she had been working full-time and regularly saving for several years but was still unable to afford a home.
'As a 25-year-old, full-timeteacher I'm doing everything right - working hard, saving where I can and trying to get ahead - but when even with astable job I'm finding it near impossible to break into the housing market,' she said.
'How can young Australians like me hope to own a home when wages haven't kept up with thecost of living?'
Mr Denniss explained to Ms Haysom that all the policies supposedly designed to help first-time buyers only stimulate demand and competition for homes, and thereby push up prices, so the handouts just end up in the hands of the sellers.
'Imagine you're at an auction andyou gave everyone $10,000, the only person you've helped is the person selling the house,' he began.
'Whether it's everybody, whether it's investors through the capital gains tax breaks, whether it's some first homeowners... we give some people a bit of cash we make them feel great.
Economist Richard Denniss (pictured) explained why measures like tax breaks only benefit current property owners
Full-time teacher Georgia (pictured) said she's saved for several years but can't afford to buy a home
'You're just changing who misses out at the auction.'
Mr Denniss doubted whether the May 3 election would bring any real solutions, regardless of the result.
'I'm sorrythat you're in that situation and I'm sorry that in the middle of an election campaign we're not actually talking about how to fix that for you and so many people like you,' he told MsHaysom.
'But let's be clear, 10 years ago (then-federal treasurer) Joe Hockey said if you can't afford a house, go and get a better job.
'We did the numbers on this and if you'd have taken his advice at the time and you had an average full-time wage job and for the last 10 years you'd been saving - you'd be $1,000 further away from a deposit on an average house in Sydney today.
'This is not complicated - as long as house prices are rising faster than wages you can't catch up.
'I'm sorry but it's a cruel hoax for people to tell you that a tax break here or something or other there is going to help.'
Mr Denniss believed the only way to help young Aussies achieve their dream of owning their own home is to keep house prices in line with the average income.
Mr Denniss compared policies like tax breaks to giving everyone at an auction an equal bonus
'House prices in Australia have risen so much faster than incomes that a whole generation's been left behind,' he said.
'As long as house prices are rising faster than wages, you can't catch up.'
Melbourne deputy lord mayor Roshena Campbell agreed it was common problem facing millennials.
'Voters younger than us have the deep despair we're not going to have it as good as our parents did,' she said.
'That's a crisis in this nation - it's a crisis of lack of hope.
'I'm notsurprised this has become a housing policy election.'
Cr Campbell added she has found hope in the election discussion to date.
Housing minister Clare O'Neil of Labor, and Coalition spokesmanMichael Sukkar then attempted to win over Ms Haysom by spruiking their party policies.
'Georgia, you have been campaigned to individually,' Q&A host Patricia Karvelas quipped.
'I want this woman to get a house!'
Host Patricia Karvelas (pictured) questioned if either of the major parties' election policies would help first-time homeowners
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Ms Haysom raised her concerns after Labor and the Coalition both made big housing policy promises over the weekend.
Opposition Leader Peter Dutton announced that first-home buyers would be able to claim interest repayments as a tax deduction, on a loan of up to $650,000, provided it is a brand new property.
Prime Minister Anthony Albanese then announced a five per cent deposit for all first home buyers and a $10 billion pledge to go towards building 100,000 new homes that will be available only to that group.
