The Housing Crisis: When Banks Dodge Questions and Inequality Runs Deep
There’s something deeply unsettling about watching a major bank executive squirm under questioning during a Senate inquiry. It’s not just the awkward silence or the carefully crafted non-answers—it’s the realization that even in the face of a national housing crisis, transparency seems like a luxury we can’t afford.
Recently, Australia’s Commonwealth Bank (CBA) found itself in the hot seat during the Select Committee on Intergenerational Housing’s hearings. The committee, tasked with investigating inequity in the housing market, was met with what can only be described as a masterclass in evasion. When asked about the proportion of profits earned from loans to owner-occupiers, CBA’s executive general manager, Robert Parker, couldn’t—or wouldn’t—provide a straight answer.
What makes this particularly fascinating is the disconnect between the urgency of the housing crisis and the bank’s apparent lack of preparedness. Senator Barbara Pocock’s frustration was palpable: ‘We’re in a housing crisis,’ she reminded the committee. ‘Why have you not come prepared to answer them?’ It’s a question that cuts to the heart of the issue. If Australia’s biggest home lender can’t—or won’t—provide clarity on its role in the crisis, how can we expect to solve it?
From my perspective, this isn’t just about a bank dodging questions. It’s about a systemic failure to prioritize accountability in an industry that wields immense power over people’s lives. Housing isn’t a luxury; it’s a fundamental human need. Yet, the way banks like CBA operate, it’s easy to forget that. Their reluctance to disclose profit breakdowns suggests a deeper reluctance to confront their role in exacerbating inequality.
The Broken Social Contract
The ACTU’s testimony at the same inquiry painted an even bleaker picture. Joseph Mitchell, the union body’s assistant secretary, didn’t mince words: Australia’s social contract is ‘broken.’ Three decades of skyrocketing house prices and the commodification of housing have created a system where homeownership is increasingly out of reach for younger generations.
One thing that immediately stands out is how housing has been transformed from a basic necessity into a speculative investment. Professional landlords and capital gains tax concessions have turned the property market into a wealth-hoarding machine, benefiting those who are already privileged. As ACTU economist Thomas Greenwell pointed out, your chances of owning a home now depend largely on whether your parents are wealthy. This isn’t just unfair—it’s a recipe for social division.
What many people don’t realize is how this intergenerational wealth gap perpetuates itself. Older generations, who benefited from cheaper housing and favorable tax policies, are now effectively gatekeeping access to the property market. Meanwhile, younger Australians are left scrambling to afford skyrocketing rents or mortgages, often with little hope of ever owning a home. It’s a cycle that deepens inequality with every passing year.
The Bigger Picture: Housing as a Human Right
If you take a step back and think about it, the housing crisis isn’t just an economic issue—it’s a moral one. The decline of public housing, as Mitchell noted, has left the most vulnerable Australians with nowhere to turn. Housing has become a privilege reserved for the wealthy, not a right guaranteed to all.
This raises a deeper question: What does it say about our society when we treat housing as a commodity rather than a necessity? Personally, I think it reflects a broader failure to prioritize collective well-being over individual profit. The fact that banks like CBA can operate with such opacity while millions struggle to find affordable housing is a damning indictment of our priorities.
Where Do We Go From Here?
The committee’s report, due in September, will likely shed more light on the causes and consequences of housing inequality. But reports alone won’t solve the problem. What’s needed is a fundamental shift in how we think about housing—not as an investment opportunity, but as a human right.
In my opinion, the first step is holding institutions like CBA accountable. If banks are profiting from the housing crisis, they should be transparent about it. Beyond that, we need bold policy changes: a massive investment in public housing, reforms to tax concessions, and measures to curb speculative investing.
What this really suggests is that the housing crisis isn’t just about numbers—it’s about values. Do we want a society where wealth determines access to basic necessities, or one where everyone has a fair shot at a decent life? The answer seems obvious, but achieving it will require more than just words. It will require action, courage, and a willingness to challenge the status quo. And that’s something we can’t afford to dodge.
