Housing experts have slammed federal government’s planned expansion of the First Home Guarantee Scheme in October, arguing it could backfire by making housing affordability even worse.

The scheme allowing first-home buyers to purchase with a deposit as little as five per cent, with previous income limits scrapped and price caps raised. The expansion has raised alarm bells for many.

Rethink Group CEO Scott O’Neill said the incentive and other first-home buyer schemes were “bandaid fixes” that failed to address the greater issue of housing supply.

He said there was a high risk the scheme would push prices higher and encourage new home buyers to take on excessive debt.

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Prime Minister Anthony Albanese’s Home Guarantee Scheme has been criticised Picture: Gaye Gerard

Mr O’Neill noted that conditions were already supporting price increaseses – even without the added stimulus of a first-home buyer scheme.

“It’s going to get really unaffordable,” he said, adding that a surge in first-home buyers will put upwards pressure on prices, particularly in lower-end price points.

Mr O’Neill said there could be “15 to 25 per cent (price) growth over the next couple of years” in the price points eligible for the scheme.

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Scott O’Neill

“The unit market in general will benefit from this because the average unit price is significantly lower than the average house price.

“Any market that’s undersupplied, wherever the vacancy rates below 1.5 per cent you’re going to see growth because people fighting over the rentals, that’s pushing rent up and pushing yields up and makes the case of buying a home more attractive.”

Mr O’Neill said these type of incentives “artificially pump the market” which will lead to long-term problems.

“Both sides of government tend to deal with the demand side and never the supply side,” he said.

“The supply is the only way to get people into homes, but they’d rather go for short-term sugar hits like this that just give you easy access.

“That’s not building new homes, especially with all of the mass amounts of new people in the country.

“I do think there’s going to be long-term problems and this is going to make it even harder for those who don’t get into the market.”

Many are predicting the new home guarantee scheme will raise prices

Other experts have previously voiced concerns for the upcoming October changes.

MCG Quantity Surveyors director Mike Mortlock said supporting more first-home buyers with purchases at a time of still crippling housing shortages would just elevate prices.

He said the scheme, and any further buyer support programs, needed to coincide with meaningful reforms that would radically increase the supply of housing.

CEO of mortgagebroker.com.au Shaun McGowan said the scheme risks trapping young Australians in decades of additional debt.

“While the government’s intention to help first-home buyers is admirable, this policy could trap young Australians in decades of additional debt,” he said.

“An extra $113,000 in interest payments over 30 years is a massive financial burden that could prevent buyers from building real wealth.”

Mr O’Neill said: “It’s better to invest somewhere rather than force yourself into a temporary home that’s not your forever home,” he said.

Some experts reveal investing or renting would be preferred in the current market

Mr O’Neill said buying a home with 95-98 per cent debt would be a life changing decision.

“The cost to own this property … that’s the real risk, not the price of the property,” he said.

“It’s the massive boat anchor of the mortgage cost that will become the dominant aspect of your life.”

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Australians are happier in the city than the country — but overall satisfaction with where they live is falling, new data shows.

The 2025 Living in Australia report by .id (informed decisions) ranks the ACT and Greater Sydney as the country’s most liveable areas, followed by Perth, Adelaide, Melbourne and South East Queensland.

The national Liveability Index has dropped to 59.5 out of 100, down from 63.4 last year. City dwellers scored 61.2, while regional and rural residents averaged 58.3.

Housing in the outer southern suburbs of Canberra.

Safety topped the list of priorities for 65 per cent of Australians, followed by affordable housing — which also scored lowest in satisfaction, highlighting a major gap between expectation and reality. Access to nature and high-quality healthcare were other top concerns, particularly for those outside major cities.

“Regional Australians are telling us loud and clear — they value healthcare and jobs, but they’re not getting the same access or quality as those in the cities,” said .id social researcher Jacquie Norton.

Dan Evans, lead of .id’s community views service, said the data shows exactly where governments and organisations need to focus.

Homes under construction in Kellyville, in Sydney’s outer suburbs.

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“With targeted investment, there’s strong potential to lift liveability and build more connected, resilient communities,” he said.

It comes as data from Muval shows how many Aussies are actively relocating in search of better lifestyles, greater affordability or increased job opportunities.

Aside from Greater Melbourne, regional areas are outperforming all capital cities in terms of net migration.

Perth is considered a liveable city in 2025, according to new research. Photo: Sharon Smith.

The most common areas people are leaving include Darwin, Brisbane’s inner city and Sydney’s inner city, and the most populr regions they are relocating to are South Australia’s southeast, Bunbury in WA, and the NSW mid-north coast.

Muval CEO James Morrell said the 2025 Muval Index gave real-time insights into how Australians were responding to the increasing cost of living and stress pressures.

“We’re seeing clear signs that affordability, flexibility and quality of life are reshaping how people choose where to live, and that trend isn’t slowing down,” Mr Morrell said.

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A new $100 million credit facility with Texas Capital Bank will enable loans to be originated by a third-party, then securitized and sold to investors in non-qualified mortgages.

This once‑quiet country town is set for a population boom in just the next decade alone. 

With its rich farming history, Mount Barker has become a drawcard for those seeking a semi-rural lifestyle – all within a 30-minute drive to Adelaide’s centre. 

Sitting 33km east of the capital city, the region is on a mission to become South Australia’s second-largest city. According to the Mount Barker District Council, its population will increase from 42,000 to 58,000 by 2036. 

Known for its lifestyle appeal, Mount Barker mayor David Leach said the city’s appeal lies in its blend of nature with convenience.

“People choose Mount Barker because it offers the best of both worlds – modern facilities and services, combined with the beauty and lifestyle of the Hills,” Mr Leach said.

Residents enjoy attractions such as the Laratinga Wetlands and Mount Barker Summit, alongside growing access to schools, childcare, shopping centres and recreation facilities. 

Housing demand also remains strong. PropTrack data shows the median house price has climbed to $747,000 – up 12.3% over the past 12 months. 

To meet demand, the council is targeting $2.8 billion in housing and project investment over the next two decades. Several large masterplanned communities are already underway, including Clover Wood, Springlake Communities, Bluestone and Larkview. 

“Mount Barker is growing, but our vision to be the most liveable region in South Australia by 2044 is clear. We’re building a community that is sustainable, connected, and proud of its identity. It’s an exciting time to be part of the Hills,” Mr Leach said. 

A region on the rise 

The Mount Barker District Council told realestate.com.au that rapid population growth has been supported by a strong focus on infrastructure.  

Road upgrades and interchange improvements are enhancing commutes, while community spaces are being expanded. 

The new Summit Aquatic and Leisure Centre adds swimming, fitness and recreation facilities, and the broader Summit Precinct is set to include a $50 million luxury hotel aimed at cementing the area as a tourism drawcard. 

“Last financial year council expended its largest capital works program in any one year which included over $7.7 million on roads, $3.3 million on footpaths and $40.4 million on recreational assets,” Mr Leach said. 

“This is a significant investment and of great benefit to the community with the addition of noteworthy regional facilities such as the Summit Aquatic and Leisure Centre.” 

New developments are emerging near the region’s centre, all within a 10‑minute drive of each other. Each is delivering amenities to support the area’s expected growth.

Clover Wood by Lanser will feature 400 properties with easy access to multiple parks and green spaces, including Clover Park just across the road. 

Springlake Communities has 550 homes across three estates – Springlake, Springbrook and Springvale – with a focus on walking paths, lakes and landscaped green space. 

Peet’s Bluestone estate will deliver more than 1400 homes, with established and future amenities including childcare, retail and sporting facilities. 

Larkview by Jinding will offer more than 300 homes, taking advantage of scenic surrounds and featuring an exclusive central park with play areas, lawns, shelters and a basketball court. 

Together, these estates are bringing hundreds of new homes, new road links and public open spaces. 

Schools, early learning centres and health services are also expanding to support the population boom, including the addition of a new 102-bed hospital. 

Rapid expansion does create pressure points. Mr Leach said both council and the state government are working to ensure traffic management, wastewater upgrades and environmental protections keep pace. 

“Council is focused on delivering the right infrastructure at the right time,” Mr Leach said. 

“Projects like the Town Square and Summit Precinct are about creating a civic heart and facilities that support employment, wellbeing, connection and growth for decades to come.” 

Are you interested in learning more about land estates near you? Check out our New Homes section. 

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Artificial grass is being slammed for its harm to the environment.

There are growing calls for councils and governments to step in and ban a growing trend across residential properties in Australia due to harmful impacts on the environment.

The installation of artificial turf in front and back yards has grown in popularity across the country over the last several years.

Once seen only in some public play areas, fake grass has become a common sight across Aussie homes.

The benefits spruiked to potential customers include no need to mow, easy to clean, stays green all year, prevents weeds.

But it is what happens years down the track once the fake grass is ripped up and replaced that is attracting the ire of everyday Aussies.

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The dumping of artificial turf is becoming a growing concern across Australia. Picture: Facebook

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Kellie Jackson called for bans on artificial grass after finding a whole pile dumped in a Victorian nature reserve.

“These pictures highlight the other side of fake grass and weedy plants,” she said in a post on Facebook.

“Once it’s time for a change they get illegally dumped in a nature reserve. Bring on bans.”

Other Aussies agreed, commenting on the post about how artificial turf is “ghastly” and hideous”.

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The dumping of artificial turf is becoming a growing concern across Australia. Picture: Facebook

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While Ms Jackson’s post highlighted the downside of artificial turf after its removal, experts say negative environmental impacts begin well before that process is even considered.

University of Melbourne’s Dr Paul Cheung researches urban heating and told Yahoo News fake grass was a massive contributor to the heating of our suburbs.

“If you compare artificial turf to natural turf, artificial turf will absorb a lot of sunlight, and it will heat your backyard or sports ovals,” he said.

“This heat impacts the health of the residents, too.

“If we are anticipating a warmer environment in the future, we have to think of every opportunity to make our environment cooler.”

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The dumping of artificial turf is becoming a growing concern across Australia. Picture: Facebook

Dr Cheung’s comments follow the release earlier this week of Australia’s National Climate Risk Assessment which indicated half a trillion dollars could be wiped off the value of Australia’s property market by 2030 as a result of climate change

And it won’t just be households in high-risk areas bearing the brunt of climate change, with some of Australia’s most affluent beach and harbourside locations identified as “primary hotspots” at risk of sea level rise, storm surges and extreme weather events.

The report warns extreme weather events, including heatwaves, will becomes more frequent and have direct impacts on homes, businesses and infrastructure.

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