Subsidies juice first home buyer property demand

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Data from the National Housing Finance & Investment Corporation (NHFIC) shows that federal government programs have been successful in coaxing first-home buyers (FHBs) into the housing market.

NHFIC’s analysis shows that people under the age of 30 account for 58% of participants in the First Home Buyer Lending Deposit Scheme and the New Home Guarantee scheme. The programs have also enabled many Australians to purchase their first home up to four years earlier than they had expected:

The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to support eligible first home buyers to purchase their first home sooner. The Scheme launched on 1 January 2020 with two major lenders and 25 non-major lenders on 1 February 2020 (a total of 27 lenders) offering guaranteed loans, and Scheme places not taken up in financial year 2019–20 (2019–20) were made available during financial year 2020–21 (2020–21).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.