- The scheme is directly contributing $18 billion to new home constructions
- 60 000 grants for new homes, further 15 000 for renovations
- MBA CEO believes the scheme averted a collapse in the industry
Homebuilder, which was announced to stimulate the construction industry back in June 2020, is forecast to directly contribute $18 billion in new home construction.
As of the end of last month, close to 60 000 applications were for new homes with 15,380 designated as substantial renovations. Many rushed to build new houses in December before the $25,000 grants were scaled back to $15,000, the level they will remain at until March this year.
The data reveals that Victorians took advantage of Homebuilder the most with 21,595 applications, considerably more than the more populous state of New South Wales which had 13,687 applicants.
The Northern Territory, the least populated of the Australian state and territories, recorded only 193 applications.
Denita Wawn, CEO of Master Builders Australia, believes the scheme has helped avoid a collapse in the industry.
“The surge in new home construction being driven by HomeBuilder has averted the valley of death that was confronting residential builders and tradies due to the pandemic,” she said.
“Without HomeBuilder thousands of small builder and tradie businesses would have gone under and hundreds of thousands of jobs would have been lost”.
As Homebuilder can be used in conjunction with other State & Territory Government grants along with First Home Buyers incentives, Ms Wawn added that she believes the scheme has helped make housing more affordable for many Australians.
“The success of HomeBuilder also demonstrates that measures that support people to overcome the deposit gap is a game-changer in making homeownership available to more Australians,” she said.
“The benefits of homeownership to individuals, families and the community can never be underestimated.”