Budget boost for housing – will Federal Budget be successful in boosting housing supply?

New economic modelling commissioned by Master Builders Australia forecasts that the $75 billion infrastructure and housing affordability measures announced in the Budget will deliver a substantial 41% boost to the supply and affordability of housing.

“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,” Denita Wawn, CEO of Master Builders Australia 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 homeownership within reach of all Australians, a new Master Builders Australia report, the only industry group representing the residential, civil and commercial construction sectors,” she 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,” Denita Wawn said.

It finds that the package, over the next years, will drive real outcomes for the entire community and deliver an overall economic boost, above and beyond current forecasts.

Key findings in the report include:

• 93,000 additional new homes for Australians and downwards pressure on house prices.
• A $4.5 billion boost to construction industry activity.
• A $3.1 billion extra for households.
• 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,” Denita Wawn said.

“There has been a lot of attention paid to the helping young Australians overcome the deposit gap, but the Budget’s supply side measures strike the main blow in keeping home ownership within reach,” she said.

“The Budget infrastructure and housing affordability provide a huge opportunity to build the new homes needed to keep homeownership within reach,” she said.

“But this and the other economy wide benefits can be only be achieved with the cooperation of the Parliament and Master Builders calls for the infrastructure and housing affordability to be passed without delay,” Denita Wawn said.

“But the full potential of the Government’s housing affordability package will only be realised with the roll out of the financial incentives to state governments to remove planning and zoning barriers to building more new homes,” Denita Wawn said.