Dr Ben Spies-Butcher was invited to give evidence before the Senate Select Committee on Intergenerational Housing Inequity in September 2026.

Thank you for the invitation to present to the Inquiry. I am the CEO of the Centre for Future Work and was previously the Deputy Director of the Macquarie University Housing and Urban Research Centre.

Housing is at the centre of rising inequality and growing economic insecurity. Expensive housing and declining home ownership rates amongst younger people reflect a form of inter-generational inequality – between older and younger generations – but also a process of rising inequality within each successive generation.

These inequalities are driven by a contradiction at the heart of Australia’s housing system.

On the one hand, housing is perhaps the single most important component of wellbeing. It impacts health, social connection, educational success and access to employment. Jobs rely on accessible, affordable housing. Shelter is a basic human need and an internationally recognised human right.

On the other hand, housing is Australia’s single largest asset category. It is larger than the stock market and more broadly shared. As house prices rise and fall so does economic confidence and employment, especially in construction.

That contradiction is playing havoc. As a source of wellbeing and security for ordinary people, the housing system is broken. Yet real change to the system creates significant economic consequences and provokes fierce political resistance.

Recent changes to capital gains tax and negative gearing address part of this problem. The changes reduce incentives driving price surges when markets are hot and reduce pressure from investor demand competing with home buyers.

However, our system of tenure continues to prioritise the interests of those who own housing over the interests of those who live in it. Two potential solutions stand out.

The first is to significantly expand the proportion of secure rental housing through investment in public and social housing. Expanding public housing requires housing that is permanently outside the market. Some models of social and key worker housing also ensure this. Our current system – or systems, as there are so many schemes – generally do not. Affordable housing schemes that discount from market rent and ‘revert to market’ are largely a band aid.

Second, private rental must become more secure. The most severe impacts of housing inequality stem from insecurity of tenure. Even after state level reforms, it is far too easy to evict a tenant and far too easy to significantly raise the rent. Fear of eviction and rent rises prevents tenants exercising the rights they nominally hold. Forced moves undermine wellbeing, social connection and productivity.

Rental insecurity also contributes to mortgage insecurity. If the only way to secure a home is through ownership, taking on very large debts becomes a requirement. High mortgage debt then exposes new owners to often extreme financial risk if interest rates rise, as they have recently.

Treating housing as a home and increasing tenure security must be a policy priority.

The Senate resolved that the Select Committee on Intergenerational Housing Inequity be established on 17 March 2026. The committee is to present a final report by 30 September 2026.