Property watchers fear the federal government's $688 million HomeBuilder scheme will do little to create demand for new houses and renovations.
Instead, number crunchers at CoreLogic believe the $25,000 grants will simply bring forward construction works that were already planned.
"This side-effect from housing stimulus has actually been seen before and it has a name: a vacuum effect," CoreLogic head researcher Eliza Owen said on Friday.
Housing Minister Michael Sukkar said the program would see 20,000 new builds and 7000 renovations.
"It means hundreds of thousands of jobs in the residential construction industry are protected," Mr Sukkar told parliament.
Eligibility for the HomeBuilder scheme is extremely restrictive, leading many critics to question how many people could benefit.
Prime Minister Scott Morrison said the program was never meant to help with small-scale renovations.
"This is not for do-it-yourself home renovations," he said.
"This is about approved work by certified builders."
He said the government was working with states to speed up application processing times, hoping it could help people who lost their homes in the summer bushfires.
Labor and the Greens have argued the stimulus should have been targeted at social housing.
HOMEBUILDER ELIGIBILITY REQUIREMENTS:
* Recipients must be owner occupiers
* Single applicants must earn no more than $125,000 per year or $200,000 combined income for couples
* Contracts must be signed by December 31
* Construction must commence within three months of the contract date
* For renovations, the existing property value must be no more than $1.5 million, and the renovation must be worth between $150,000 and $750,000
* For new builds, the house and land value must not exceed $750,000
Australian Associated Press