Cheaper Homes Jump in Price After Five Percent Deposit Guarantee Takes Effect

Cheaper homes are rising faster than the wider market, contradicting assurances the deposit guarantee would not push up prices.

Prospective buyers attend a property auction in Sydney, Australia, on May 8, 2021. Lisa Maree Williams/Getty Images

The federal government’s signature housing policy appears to have triggered a divergence in the market, making lower-priced houses less affordable for first homebuyers.

Prime Minister Anthony Albanese won re-election after campaigning on a five percent deposit guarantee, implementing the policy on Oct. 1.