In November 2019, NHFIC’s Investment Mandate was updated to include an additional function: conducting research into housing affordability in Australia. NHFIC’s research function supports the monitoring of housing demand, supply and affordability in Australia, highlighting current and potential future gaps between housing supply and demand, and complementing existing housing-related research.
Many governments around the world have responded to the spread of COVID-19 by prioritising community health over economic growth. This approach was taken after weighing up the effect of an uncontained spread of the virus versus the economic and social cost of job losses.
The global pandemic could cut underlying dwelling demand in Australia by between 129,000 and 232,000 from 2020 to 2023, mainly due to the downturn in net overseas migration (NOM). International border closures have effectively shut down NOM, which has accounted for 59 per cent of population growth since 2007.
NHFIC's second research report released in August 2020 – First Home Loan Deposit Scheme - Trends and Insights – provides a detailed snapshot of the First Home Loan Deposit Scheme (FHLDS) for the first six months of its operation, from 1 January 2020 to 30 June 2020.
The Scheme has experienced strong demand and supported a broad cross-section of Australians purchasing their first home. This includes people of all ages across metro and regional areas around Australia, and those who have moderate taxable incomes. The Scheme is also supporting key workers, such as teachers and nurses, to access the housing market sooner.
The first research report released in June 2020 – Building jobs: How residential construction drives the economy – looks at the important role the residential construction industry plays in generating jobs and growth across the Australian economy.
The residential building construction industry generates more activity across Australia than nearly every other industry, with each $1 million of economic output supporting nine jobs across the economy.