House prices in Australia have risen at nearly twice the rate of salaries since the Covid pandemic, according to analysis by SkyNews.com.au.
Incomes would have to spike about 19 per cent simply to return to pre-pandemic housing affordability levels, or home prices would have to fall 16 per cent.
The findings deepen the housing crisis as it emerges as one of the Albanese government’s most significant ethical challenges.
SkyNews.com.au analysis shows the national median dwelling price has increased 52 per cent from $565,474 in December 2020 to $857,280 in September 2025.
In comparison, median salaries have only risen from $59,800 to a forecasted $76,180 over the same period, a 27 per cent increase.
While both figures show growth, house prices have far outpaced income, putting home ownership increasingly out of reach for everyday Australians.
The rapid price growth comes amid historically high levels of immigration under the Albanese government.
The Institute of Public Affairs noted in September that Net Overseas Migration for the March quarter of 2025 was 110,062 — double the pre-pandemic quarterly average.
Meanwhile, migration intakes since the end of the pandemic have contributed to a housing supply shortfall of approximately 179,000 between 2022 and 2024.
Another major strangle on housing supply has been the cumbersome levels of red tape imposed under the Albanese government.
The National Construction Code has forced builders to allow for the installation of renewable energy and electric vehicle infrastructure, even if none exists at the home.
The 2022 changes to the code were said to have increased house costs by between $30,000 and $50,000.
As housing affordability has shot out of the reach of many young people, Treasurer Jim Chalmers has repeatedly claimed the government has helped Australians earn more.
“Our economic plan is designed to help Australians earn more and keep more of what they earn,” the Albanese government has repeated ad-nauseum.
But even if Australians have been earning more, due to inflation and the dramatic rise in house prices, those earnings have not translated to home ownership.
Independent Senator Tammy Tyrrell told SkyNews.com.au that the way to address the housing crisis was to increase supply.
“This whole housing crisis? It’s not rocket science. It’s a supply problem, plain and simple,” she said.
“Both sides of politics are just throwing money at it with these schemes that only end up pushing prices higher. It’s like pouring petrol on a fire.
“The only way out is to build more homes, and we need to do it a lot faster.”
Ms Tyrrell said she has been able to secure 1,200 new Tasmania homes from the government’s housing fund.
Meanwhile, shadow Housing Minister Andrew Bragg viciously attacked the government’s record on housing supply.
“Labor’s had three and a half years. They’ve spent $60 billion on housing to build fewer houses than the previous government,” he said.
“Labor’s only managed an average of 170,000 houses per year. The last Liberal government averaged 200,000 houses per year.
“Labor has driven a surge in population but presided over a collapse in housing construction. There are 30,000 fewer houses being built each year under Labor.”
As part of efforts to increase housing affordability, Housing Minister Clare O’Neil launched the new five per cent deposit scheme for first time buyers on Wednesday.
She described the initiative as “life-changing stuff” and a “genuine expansion of home ownership opportunities”.
However, Prime Minister Anthony Albanese acknowledged the deposit scheme would make houses more expensive, not more affordable.
“Well, it will have a minimal impact. There will be a slight increase in prices,” he told reporters on Wednesday.
“But already 185,000 Australians have benefited from this scheme with minimal impact on prices.”
Shadow assistant minister for competition Dave Sharma told Sky News the scheme was “terrible housing policy”.
“I don’t think anyone thinks, especially people who are aspiring to buy a home, the policy of the government to make housing more expensive is a good idea,” he said.
“All it is going to do is push housing prices up and do nothing to address supply. That is the recipe for a terrible housing policy and worse home affordability.”
Despite these efforts, the government has been widely expected to fall short of its goal of building 1.2 million homes by 2029.
Recent data has shown that the government will fall short about 260,000 homes – and it has already fallen about 60,000 homes behind schedule.
Meanwhile, housing affordability was recognised as the second biggest ethical issue for the Albanese government in 2025.
According to the Governance Institute Ethics Index, housing affordability ranked as the nation’s second-highest ethical concern.
The number one concern was cost of living pressures, which also included the cost of housing and rent.