House prices to grow, just more slowly

House prices will grow more slowly under Labor's changes to negative gearing and capital gains tax, an ALP-aligned think tank predicts.

The McKell Institute report, due to be released ahead of a debate between Scott Morrison and Chris Bowen in Canberra on Friday, finds the value of homes will still grow each year, albeit at a "more modest" rate.

But the report claims the policy will not cause the housing market to crash, according to Fairfax Media.