The Morrison government has defended its credentials on housing while lampooning Opposition Leader Anthony Albanese's stance.
Labor has flagged election policies to improve social housing and affordability, but Finance Minister Simon Birmingham is sceptical about Mr Albanese's real agenda.
"He's unable to say whether or not Labor will junk its housing tax policy on negative-geared properties," Senator Birmingham told reporters in Canberra on Thursday.
House prices are surging and affordability worsening, with dozens of people turning up at some rental inspections in cities and regional areas.
Critics say the budget did little to help the growing crisis, but federal Housing Minister Michael Sukkar shifted blame to the states and territories, who he says need to do more to meet needs.
The federal budget is banking on HomeBuilder grants of up to $25,000 for new builds or renovations to unlock a $30 billion in residential construction activity.
Mr Sukkar told parliament half of the people using the scheme were first home buyers.
"They are buying modest first homes," Mr Sukkar said, as government support lifts first home buyers to the highest level in nearly 15 years.
"Not the people who, as the leader of the opposition suggested, would be investing that money into pearl taps and gold bars."
Mr Sukkar was "most proud" of the new family home guarantee that will allow single parents to purchase a home with a two per cent deposit and save on home lenders insurance.
"We have been overwhelmed by the feedback we have received from single parents."
Mr Sukkar earlier defended the government's credentials on affordable housing, saying more than $8 billion a year was being spent on rentals.
"Not one-off spending, $8 billion every year of recurrent spending, $5.5 billion towards commonwealth rental assistance, which helps people in social and affordable housing, by giving them a payment towards their rent," he told the ABC.
The National Housing Finance and Investment Corporation partners with community housing providers to build social and affordable housing in cities and country towns.
It raises money at lower rates from the bond market for not-for-profit community housing providers, which Mr Sukkar said had supported 6500 dwellings.
"We announced an additional $125 million to support states and territories in meeting those obligations and helping them increase their stock of social and affordable housing."
