1 in 3 first home buyers assisted by the Australian Government’s Home Guarantee Scheme
In 2023-24 the Home Guarantee Scheme (HGS or Scheme) supported 34% more home buyers to purchase or build their own home than last financial year, with an increasing number of key workers and regional Australians participating in the Scheme, according to Housing Australia’s Home Guarantee Scheme Trends and Insights Report 2023-2024.
Housing Australia today released its annual Home Guarantee Scheme Trends and Insights Report 2023-24 covering data on the First Home Guarantee (FHBG), Family Home Guarantee (FHG) and Regional First Home Buyer Guarantee (RFHBG).
The report found that around 1 in 3 first home buyers were supported by the Scheme in 2023-24. Over the financial year, 43,800 Scheme places were taken up, helping more eligible home buyers to enter the housing market under the HGS.
Regional Australians comprised a significant portion of eligible home buyers utilising the Scheme, with over 18,000 regional Australians supported including over 13,000 people accessing the RFHBG. An additional survey conducted with participants found that 42% of individuals entered home ownership after renting in regional areas for approximately two years or more.
Key workers were also active participants of the Scheme, with over 11,300 key workers enter into home ownership in 2023-24. The majority of these were nurses, teachers and social workers who were supported by the Scheme to secure stable housing located near their place of work.
The highest participation in the Scheme in 2023-24 was in Victoria, followed by Queensland and Western Australia, with the top three areas for home buyers consisting of Hoppers Crossing, Craigieburn and Cardinia in Victoria. The median national purchase price under the Scheme was approximately $455,000 for single borrowers and $600,000 for joint borrowers.
The effectiveness of the HGS goes beyond assisting eligible home buyers enter home ownership sooner, as almost 1 in 5 of home buyers have already transitioned out of the Scheme, after an average of two years within the Scheme. This demonstrates the Scheme is acting as an effective temporary mechanism in the home ownership journey.
Chief Program Officer of Home Ownership, Jennifer Chew, said, “It is incredibly rewarding to witness the Home Guarantee Scheme empower households to achieve the dream of home ownership sooner across Australia. Amidst rising living costs and housing affordability challenges, the Home Guarantee Scheme has supported thousands of eligible home buyers to navigate the market and achieve home ownership sooner. The strength of the Scheme is further demonstrated by the number of participants that have transitioned out of the Scheme due to equity built up.”
For more information, view the full report here.