Changing directions in Australian housing policies: The end of muddling through?

Abstract From the post‐war period through to the 1980s, Australia's housing system was dominated by tenure‐based policies directed towards home ownership and the provision of public housing. Private tenants were virtually excluded from housing assistance of any form. The 1990s, however, have seen an apparent U‐turn in housing policies with elimination of explicit home ownership policies, the withdrawal from direct involvement in public housing funding and a rapid expansion of rental assistance for private tenants. Australia is about to follow its New Zealand neighbour in undertaking a wholesale shift away from direct intervention in the production of housing and moving towards consumer subsidies which rely on the effective operation of the private sector in meeting housing needs. This paper provides a brief overview of changes in policies towards home ownership, public rental and private rental, a framework for interpreting these and an assessment of the appropriateness of the directions currently being followed in light of current economic trends.