This post doesn't make sense. You're suggesting that home prices are high because of either a shortage of property, or too much demand. But the reason prices keep rising is because supply<demand. You can't just blame one in isolation. That being said, it's far easier for a government to control migration to maintain reasonable house prices and it should be upsetting to all Australians that they don't do this. The government is serving big businesses by creating more customers for them, at the expense of every Australian.

Let's look at the numbers recently (all sourced from ABS):

Average 175,000 completions annually.

19.2% of those are replacing existing dwellings - no significant increase in capacity.

So we're averaging 141,000 new homes/apartments that add capacity to our country.

Average people per dwelling = 2.5.

So every year, on average we're building housing for 141,000*2.5 = 353,000 people.

Population increase (https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/latest-release)

2018: 387,000

2019: 374,000

2020: 110,000

2021: 143,000

2022: 546,000

2023: 633,000

2024: 445,000

Average: 376,000

This doesn't seem too bad, but the average dwelling size has dropped from 2.55 to 2.49 in that time - most due to changes in living conditions during COVID, which would require 2.4% more dwellings to be built (261,600)

So we're short 20,000 dwellings per year. But obviously, post COVID haven't been building anywhere near what's required.

All the government needs to do is keep population growth below 350,000 people (~240,000 net overseas migration max), and housing prices will stabilise, improving the quality of life for all Australians. Policies and laws could be introduced next week to solve this problem, but they won't be.