Those looking to enter the property market for the first time will be eligible for $20,000 from July 1 if they build a house valued under $750,000.

In announcing the move, Premier Daniel Andrews said it would have positive impacts.

“This is a win for first home buyers in regional Victoria, and it’s a win for local jobs too,” he said.

“By doubling this grant, we’re giving young people in regional Victoria even more reason to live locally.”

Helping keep young people in the country or attracting more from the city is important for economic and social reasons. More broadly, it could help ease population pressure on the state’s capital.

“Importantly, we’re not making these changes in isolation,” Mr Andrews said. " As our regional communities grow, we’re also investing in public transport, local roads, and the schools and hospitals they need.”

A decade or more ago, the first home owners and builders grants reached even more generous proportions combining federal and state incentives. Some argued it was an artificial stimulus, prompting higher prices and neutralising the benefits of the incentive for young aspirants clamouring to get into their own home. This generation of would-be homeowners have certainly seen no retreat in housing affordability in capital cities. 

Housing affordability by comparison to these stratospheric levels displayed in capital cities is not a huge issue in regional cities. If these market driven highs seem at times unreal, inspiring some property owners to smug delight and other aspirants to despair, then the absurdity lies in the stark relativity of the value of what they can actually buy.

One could sell an ordinary house in the lucrative 7km ring of Melbourne’s inner suburbs, buy a far larger house in Warrnambool, reap all the lifestyle benefits of a city and still walk away with a million dollars change.

But this bald comparison would mean little to someone who had never considered the relative merit.

A well administered and governed scheme has merit for other reasons than affordability. Builders and associated tradespeople will benefit as part of an economic boost. A spike in building activity traditionally leads to more apprentices, another positive for young workers.