The extension of the federal government’s HomeBuilder program will unleash an unprecedented national surge in housing construction, with every state and territory booming above its previous peak simultaneously, the Housing Industry Association says.

The government’s decision to allow a further 12 months for work to start on dwellings contracted under the stimulus program – giving builders until September 30 next year to begin work, rather than the end of September this year – would allow more of the homes to actually be built, the lobby group said.