Federal budget homeowner incentives could worsen regional housing shortage, industry warns

The federal government is expanding three homeowner schemes due to end in June, with double the number of places to be offered to help buyers break in to the housing market. Key points: Builders say waiting lists for new homes are already up to one year and will increase further if the new incentives drive up demand Industry members warn this could exacerbate an existing residential land shortage in regional areas Calls for more social housing and rent relief went unanswered in the federal budget The Regional Home Guarantee announced in Tuesday's federal budget will allow eligible applicants to build or buy newly-built homes in regional Australia with only a five per cent deposit. Tell us here A developing problem Bendigo real estate agent, and local chair of the Real Estate Institute of Victoria, Matt Bowles said the regional city was facing a shortage of developed land. Social housing crisis remains In north west Victoria, the Yarriambiack Shire Council is awaiting the result of two funding applications to secure 39 social and affordable housing units across several towns. Ms Zanker said Warracknabeal, the shire's main town of 2,000 people, had felt the effects of the pandemic tree change, with four people moving to her street alone in the past 18 months.