The proposal - which hinges on doing away with negative gearing - is forecasted to cause a massive spike in rent, with economic analysts SQM Research predicting a double-digit increase in major cities.
According to Daily Mail Australia, if Labor win the May federal election - as anticipated - Perth and Brisbane will be the worst affected by surges with increases of 12 to 22 percent forecast.
Melbourne and Adelaide are expected to face rises of between nine and 15 percent, while Sydney, Canberra and Hobart should brace for anywhere from three to 10 percent.
Meanwhile, house prices are set to plunge under the new Labor plan.
Economic models predict a dramatic drop in property values in the region of 15 percent.
If accurate, the shocking developments would represent a staggering 29 percent drop in the median price of Sydney houses in just five years - equal to a decline of $300,000 AUD.