Other "suggestions", not necessarily from politicians include include:
- doubling the first homeowners' grant from $7000 to $14000
- reducing state taxes, such as stamp duty.
- reducing the charges on developers that passed on to buyers. For example councils charge developers for much of the costs of establishing new roads, water, sewerage; they are charged for electricity and gas mains; and telephone lines. All these are passed on to the buyer.
Developers, of course want to build bigger, more luxurious houses, because they make more money of their investment. That's how business works, and no "adjustments" will change that.
Our society is a "me" society: we want the best, we want it all, and we want it now. Unless first home buyers change their tune to start with more modest houses, housing affordability will remain low. A two-storey "McMansion" with all mod cons, home theatre, multi-car garage and instant gardens is not the low-cost ideal for young(ish) first home buyers. Housing affordability will always be lower in large metropolitan areas, because that is where population growth is greatest, and so is demand, at the moment. Low interest rates might help, but it is the total cost of the houses that has the most impact on affordability at the moment.
Nevertheless, our politicians want to be seen to be doing "something", "anything" that might attract votes. We might get many comments and a lot of hot air, with little result. There is, after all, an election due in the next 6 months.