Australia’s housing system is under growing strain, and experts are calling for urgent reform to how housing policy is coordinated and delivered across government.
A new AHURI report highlights how disjointed administrative structures and frequent departmental reshuffles are undermining national housing outcomes—at a time when supply is already falling short.
The AHURI report, “Fine-tuning the machine: Evaluating machinery of government for housing policy administration”, co-authored by Joshua Newman, Michaela Lang, Michael Mintrom, Adam Graycar, Julie Lawson, and Jago Dodson, explored how shifts in administrative responsibility across federal and state levels are undermining Australia’s housing outcomes.
“Responsibility for smaller aspects of housing policy is spread across multiple departments and agencies,” the researchers wrote. “This has made housing vulnerable to frequent government changes, often causing service disruptions and reduced policy capacity.”
The authors argued that Australia’s housing agenda has drifted away from its core purpose.
They said policy should “primarily ensure adequate and secure shelter for all Australians,” and that both service-based supports like social housing and ownership initiatives like first-home grants must be treated as part of the same broader mission.
“In recent decades, homeownership has been emphasised for its investment potential,” they said. “This has created a political climate where ownership issues get much more attention than service-based housing. This has led to a degraded social housing sector.”
The AHURI report found that when housing sits inside larger departments, it often becomes a secondary priority. Frequent restructures weaken policy continuity and damage internal expertise.
“In-house expertise becomes less valued when units are frequently moved or split, as generalist managers are preferred over specialists in these situations,” the researchers said.
The report also warned that repeated restructuring takes a toll on staff morale.
“Restructures can also harm staff morale, leading staff to feel their policy area and work is not valued by senior management,” the researchers said.
The authors proposed a series of reforms, most notably the creation of a dedicated housing department at the Cabinet level.
“A Cabinet-level department of housing with a Cabinet-level minister is the best way to advance public policy objectives,” they said. “This will ensure housing gets the resources needed to address urgent issues.”
The AHURI report also recommended a stronger legal agreement between federal and state governments to protect long-term housing strategies from political change.
“A firmer legal framework between the Australian government and the state and territory governments is needed for a coordinated, long-term national housing strategy,” the researchers said.
“States and territories should implement housing policy and deliver services. Strategies should have long-term goals and be protected from electoral cycle instability.”
According to the AHURI research, treating housing purely as an economic asset undermines its role in supporting equity and wellbeing.
“Housing policy should also include a human rights-based approach. This will restore the understanding of housing as a societal goal,” the researchers said.
The report also called for policies that direct private development to align with social outcomes and urges more support for the community and not-for-profit housing sectors.
“Community and not-for-profit housing organisations need better resources to provide more services more securely. More direct public sector intervention is necessary,” the researchers said.
Lastly, the researchers stressed the need for rigorous evaluation of government restructures to understand their real-world impacts.
“Evaluating machinery of government changes is essential,” they said. “A clear understanding of who benefits and who might be disadvantaged by changes is crucial for learning the right lessons from any restructuring.”
