Greg Hankinson , Director - Metropole Constructions
Australia’s housing market is a complex beast, but sometimes, a single policy shift can ripple across the entire ecosystem.
The Housing Industry Association’s latest analysis of the First Home Guarantee (FHG) reveals just how far those ripples might reach.
The removal of mandatory Lenders Mortgage Insurance (LMI) for eligible first home buyers – allowing purchases with just a 5% deposit – is a game-changer.
According to HIA modelling, this could support up to 50,000 new home purchases annually, with around one-third likely to be new builds. That’s not just good news for buyers, it’s a signal to homebuilders and investors that momentum is shifting.
For homebuyers, it’s a chance to enter the market sooner, with lower upfront costs. But it’s not just about affordability, it’s about confidence. The FHG is helping more Australians believe homeownership is within reach.
Homebuilders should take note. With increased demand for new dwellings, particularly in growth corridors and regional hubs, the pipeline for construction is poised to expand.
HIA’s research suggests this could translate into tens of thousands of new homes each year – stimulating jobs, supply chains, and local economies. And for investors? While some may worry about competition, the long-term view is promising. More new builds mean more rental stock, which can ease vacancy pressures and create opportunities for strategic investment in high-demand areas.
The FHG is also expected to increase property prices as demand strengthens significantly, which will help to underpin new development and construction activity in Sydney, Melbourne and Brisbane.
At Metropole, we see the FHG not just as a policy, but as a catalyst and a reminder that when government, industry, and buyers align, the market responds.
