Nearly 100,000 Australians Take Up First Home Owners Boost

The Rudd Government’s Nation Building Economic Stimulus Plan is continuing to support housing sector jobs with more than 97,000 Australians taking up the First Home Owners Boost by the end of May.

New figures show that May saw the highest take-up so far of the First Home Owners Boost – 19,607.

The First Home Owners Boost, combined with lower interest rates, has brought close to 100,000 first home buyers into the market. Activity in the housing sector means more local jobs for builders and tradies right across the country.

ABS Housing Finance for April showed the number of loans for owner occupiers increased for the seventh consecutive month. First home buyers made up 28.0 per cent of all new loans for owner occupation – the highest level since the ABS began collecting this data in 1991.

Analysis of recent ABS data on employment trends shows that employment in construction increased by 10,000 in seasonally adjusted terms in the three months to May 2009.

The Rudd Government announced a six-month extension to the First Home Owner’s Boost (FHOB) in the May Budget. The Boost will be reduced by half for the last three months of the extension period.

Extending the First Home Owners Boost will support more local jobs and help more Australians realise their dream of home ownership. It makes sense to phase out measures such as the First Home Owners Boost to allow the market to re-adjust gradually as the grants reduce.

A strong housing market is critical for underpinning confidence and supporting jobs in the Australian economy as we battle the worst global recession in 75 years.

The Government’s plan for the housing sector reaches beyond support for first homebuyers. We have also committed $6.4 billion to build 20,000 new social housing dwellings across the country.

The social housing program – estimated by Treasury to support 15,000 jobs nationally over the next two years – will provide stimulus for the housing sector through right through 2009 and 2010 with the maximum impact timed to come as the impact of the First Home Owners Boost is starting to wind down.