The great Australian dream of owning your own home has prevailed for more than half a century but with surging house prices in some parts of Australia, there has been much debate about whether it will continue. Historically low interest rates, an unprecedented period of continuous economic growth and strong levels of migration have contributed to increasing demand and escalating housing prices in Australia’s capital cities. Rapid residential house price increases have inevitably delivered winners and losers, not only for individuals but also for government. Surging property prices have delivered windfalls for government through increased direct taxes, such as stamp duty, and through increased economic activity due to construction. However, growing housing demand has also increased pressure on governments to deliver increased infrastructure and services. While there is much talk about growing inequality due to increasing house prices, pushing some to the outer urban fringes, and potential long term impacts if a larger number of people in the future retire without owning their home, pulling policy levers must be done with care.