Young people across Australia are struggling from a disproportionate amount of financial and economic instability in comparison to all other age groups, driven by the ongoing housing, rental, and cost-of-living crisis. This issue is critical as stable and affordable housing is foundational for young people's independence, mental wellbeing, and future success. The current economic conditions, exacerbated by inflation and stagnating wage growth, have made home ownership increasingly inaccessible for many young Australians. Young people are disproportionately impacted by unemployment and underemployment, stemming from economic downturns including the COVID-19 pandemic and global economic instability. This exacerbates financial insecurity, negatively affecting mental health, relationships, physical health, and overall quality of life. 

Specifically, young people have reported significant financial stress, with one in five experiencing financial constraints (Mission Australia, 2023). Marginalised groups such as gender diverse individuals, Indigenous youth, culturally and linguistically diverse communities, and youth living with disabilities experience heightened vulnerability. Financial stress has led to higher rates of housing instability, poorer mental health, barriers to education and employment opportunities, and a generally pessimistic outlook towards future prospects. Addressing this crisis necessitates targeted policy interventions, such as increasing income support, expanding affordable youth housing, and enhancing educational and employment pathways, to facilitate home ownership among young Australians.

Both Labor and the Liberal Coalition have articulated different strategies to address the housing crisis impacting young people. The Albanese Labor Government pledges a significant $33 billion investment through the 'Homes for Australia Plan', aiming to deliver 1.2 million homes, 55,000 social and affordable homes, and assist first-home buyers through reduced deposits and mortgage insurance waivers. Labor also proposes expanding its 'Help to Buy' scheme and introducing measures to limit foreign investor purchases. 

The Liberal Coalition critiques Labor's record, arguing current policies exacerbate housing unaffordability through high migration rates and regulatory burdens. They propose a $5 billion investment in infrastructure to unlock up to 500,000 homes, freezing changes to the National Construction Code for ten years, and permitting young Australians to access up to $50,000 from their superannuation to purchase homes. 

Academics and think tanks argue that while both political proposals contain valuable initiatives, broader structural reforms are necessary. According to Orygen's report ("Counting the Cost of Living"), experts advocate comprehensive housing reform, increased social housing, targeted financial aid, and removal of systemic inequities. They emphasize the necessity for collaboration across federal, state, and local governments, asserting neither major party’s plans sufficiently tackle systemic inequalities and intergenerational disadvantages. 

AYAC emphasises the urgent need for targeted policy measures that specifically address young people’s experiences of housing stress and affordability, as outlined consistently in previous submissions and reports. Labor’s Help to Buy and Home Guarantee scheme will do little to support young people faced with intergenerational economic disadvantage, or those who commonly fall into the category of renters and low-income earners. Our joint submission with Orygen to the Senate Select Committee on Cost of Living (2023) highlighted young people's disproportionate vulnerability to cost-of-living pressures, including housing insecurity and its negative mental health impacts. AYAC has previously advocated for raising the rates of Youth Allowance and Jobseeker payments above the poverty line to reduce financial barriers that impede young people's ability to secure housing (AYAC, 2024). 

Further, in response to the National Housing and Homelessness Plan Bill (2024), AYAC recommended establishing a dedicated youth housing and homelessness strategy, ensuring that policies address unique drivers such as limited employment security, lower incomes, and age-based discrimination in the rental market. Additionally, AYAC urges guaranteed representation of young people in policy-making processes, including multiple dedicated positions on housing advisory councils, to ensure genuine youth engagement and solutions tailored to young Australians' specific needs. Although Labor’s recognition of the housing crisis is welcome, addressing housing affordability requires comprehensive, youth-specific measures that tackle systemic inequality and empower young Australians to achieve stable housing.

AYAC & Orygen (2023) Senate Select Committee on Cost of Living Senate+Select+Committee+on+Cost+of+Living+-+Orygen+AYAC+joint+submission+FINAL[84].pdf

AYAC et al. (2024) Youth Peak Bodies Australia-wide call on the Government to Raise the Rate https://static1.squarespace.com/static/60948b9e3847ee0caf0e2dd4/t/670c5bd97504a62f06ac26f8/1728863199213/Raise+the+rate+letter_Federal+pre-budget+submission_Jan+25+2024.pdf

AYAC (2024) Budget Summary – The 2024-2025 Federal Budget and Young People https://static1.squarespace.com/static/60948b9e3847ee0caf0e2dd4/t/670c5bd97504a62f06ac26f8/1728863199213/Raise+the+rate+letter_Federal+pre-budget+submission_Jan+25+2024.pdf

AYAC (2024) National Housing and Homelessness Plan Bill 2024 (No. 2) DRAFT AYAC submission on National Housing and Homelessness Plan Bill 2024-08-08

Australian Labor Party (2025) https://alp.org.au/helping-with-cost-of-living/ , https://alp.org.au/homes-for-australia/

Liberal Party of Australia (2025) https://www.liberal.org.au/our-plan/affordable-housing, https://www.liberal.org.au/our-plan/economy

Orygen (2024) Counting the Cost of Living – The impact of financial stress on young people Counting the cost of living - Orygen, Revolution in Mind