Wikipedia

The problem is that any dramatic fall in house prices risks an absolute calamity economically as innocent people who are only working to pay off the roof over their heads find themselves underwater on their mortgage.

Bankruptcies are painful not just economically, but also socially and mentally - which is why we really need to ‘thread the needle’ in such a way that housing costs stagnate for multiple generations, rather than drastically fall backwards.

One other option would be to allow home owners to somehow claim primary/residential losses against their income tax - but that could likely be an imperfect solution that would probably face too many headwinds politically to ever pass.

But the most obvious, low hanging fruit would be to roll-back Howard-era changes to Negative Gearing and Capital Gains benefits, as well as imposing restrictions on who can buy residential properties in Australia (eg. require a PR to be able to purchase a primary place of residence, citizenship to purchase additional properties).

The problem though is that whichever political party would ever be brave enough to pass this legislation (let’s be honest, it would only ever be Labor and not the LNP), risks being absolutely slaughtered in the media, losing the subsequent election, only to have the incoming government undo said changes.