The House of Representatives Standing Committee on Economics will examine rates of home ownership, demand and supply drivers in the housing market and the proportion of investment housing relative to owner-occupied housing.
It will also look into the impact of current tax policy at all levels and opportunities for reform.
Committee chairman John Alexander said the importance of this issue makes it worthy of a detailed inquiry.
“Home ownership is an issue that lies at the core of the Australian dream and represents the largest investment that most taxpayers will make during their lifetime,” Mr Alexander said.
Another federal housing inquiry, which delivered its final report earlier this month, called for an end to stamp duty.
Housing Industry Association managing director Shane Goodwin said that ensuring strong levels of ownership should be a priority for the government.
Mr Goodwin said the focus in the inquiry on taxation is welcomed as “the disproportionately high tax burden on new home building is one prime reason that many Australians who should be purchasing their first home are not able to do so”.
The committee is accepting submissions until June 26 will present its report in December.
[Related: Inquiry calls for dedicated housing minister]