Recent research by the National Housing Finance and Investment Corporation predicted that demand for housing in Australia would fall by up to 232,000 dwellings over the next three years.
In the wake of the NHFIC report, the Property Council of Australia is calling on the Federal Government to take a two-pronged approach to this issue: to extend the HomeBuilder stimulus program for a further six months, to July, 2021, and to implement a ‘Welcome to Australia’ migration plan “to provide the skills, people and growth our economy needs”.
“The NHFIC report paints the scenario we can’t allow to happen, because if we do, it will mean many tens of thousands more Australians losing their jobs,” Property Council Chief Executive, Ken Morrison, said.
“The need for stimulus has rarely been more stark and the success of HomeBuilder will need to be extended to 30 June next year to support tradies and many additional jobs in one of Australia’s most productive industries.”
Mr Morrison said a roadmap for restarting our migration program “should be a top priority for National Cabinet”.
“It will need to be done safely, sensibly and in stages with public health always at the forefront,” Mr Morrison explained.
“But we cannot avoid the inescapable and profound economic impact of keeping our international borders closed to migration.
“Migration always has and will continue to be one of the big drivers of our economic growth and prosperity, and needs to be front and centre in our economic recovery plans.
Recently, the Housing Industry Association’s New Home Sales report credited HomeBuilder for keeping the building industry afloat throughout the forthcoming December 2020 Quarter.
“Without intervention, a significant contraction of work on the ground would have occurred in the second half of 2020, which meant up to half a million jobs were at risk,” HIA Chief Economist, Tim Reardon noted.
“On balance this leaves the six months to August 8.7 per cent higher than the same time last year.”