The federal budget’s measures to address infrastructure and housing affordability challenges will result in a 41 per cent boost of affordable housing supply, a report says.
The report commissioned by Master Builders Australia says the government’s measures, if implemented, would be a “huge opportunity” for first home buyers.
“Increasing supply is the only effective way to keep the dream of home ownership alive. Master Builders has lobbied for measures to support the building of more new homes and the government has listened,” the association’s CEO Denita Wawn said.
“Nearly 100,000 new homes, more than 15,000 new jobs, a $3.1 billion for the household hip pocket are just some of the many benefits detailed in unlocking supply, keeping home ownership within reach of all Australians,” Ms Wawn said.
“The report analyses the $75 billion infrastructure package, including the $1 billion National Housing Infrastructure Facility, using modelling from Cadence Economics to determine what it means for the community, economy and the construction sector.”
The report found that the housing affordability and supply measures would:
- Build 93,000 additional new homes and put downwards pressure on house prices;
- Inject a $4.5 billion boost to construction industry activity;
- Give $3.1 billion extra for households; and
- Create a $2 billion boost for GDP.
“This is good news for builders and tradies, the economy, mums and dads, and will go a long way to keeping the Australian dream of home ownership within reach,” Ms Wawn said.
“There has been a lot of attention paid to helping young Australians overcome the deposit gap, but the budget’s supply side measures strike the main blow in keeping home ownership within reach.
“The budget infrastructure and housing affordability provide a huge opportunity to build the new homes needed to keep home ownership within reach. But this and the other economy-wide benefits can only be achieved with the co-operation of the Parliament and Master Builders calls for the infrastructure and housing affordability [bills] to be passed without delay.”
Ms Wawn said the full potential of the housing affordability measures will be addressed by incentivising state governments financially to remove planning and zoning barriers to allow for more homes to be built.