Tradespeople were put under increasing pressure after the grant's announcement as thousands of first-home builders rushed to begin construction.

The federal government has since extended the time allowed between signing a contract and the commencement of physical work on a residential property from six months to 18 months, and G.J Gardner Homes Wagga manager Darren O'Donnell said the news came as a huge relief.

"The increase in builds has just been massive in recent months, and we were struggling to get council approvals and orders and such done on time to make sure customers were able to get their grant," he said.

"It has been stressful when you sign people up promising to get it done in that time frame, and then risk that falling through for reasons beyond your control, so to have this extra time really alleviates that pressure."

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While the demand has been stressful, Mr O'Donnell said it had still benefited the business.

"We have had to put more staff on so it's definitely had the desired effect," he said.

The government's decision to provide existing applicants with an additional 12 months to commence construction came in response to unanticipated delays in the construction industry caused by COVID-19 related supply constraints, including delays in global supply chains.

Dahlsens Wagga account manager Jake Demczyszyn said they had felt the strain on resources as major suppliers to the Riverina building industry.

"Materials are what really hold up these jobs, and that comes back on us," he said.

"Supplies are pretty scarce at the moment and this is the busiest we have been in a long time, so having a bit more time to sort it out is very welcome."

Mr Demczyszyn said supply restrictions were a result of multiple factors.

"Imported products are the biggest issue holding up supplies because of the difficulty getting products into the country, but the other side of things is the impact from the bushfires still," he said.

"That burnt through a lot of our local pine stock, so only added to the pressure of sourcing materials."

Internal supplies for new homes have also been difficult to source, according to Payne's Carpet Court owner Ryan Payne, but the benefits have outweighed the struggle.

"Everyone is snowed under, but that's a good thing and means the whole grant system has worked well," the Wagga business owner said.

"Wagga is booming in the building industry and I expect that will continue still for the next three or four years with all the overflow."

Mr Payne did welcome the extra time, though, and said any support was welcome.

"It even just gives the customer more time to decide what they really want in their new home, and on the supply end as well," he said.

"There have been a few stock problems mainly with international orders, but otherwise we've been very lucky."

The extension will only apply to existing applicants and provide an additional 12 months to commence construction from the date that the building contract was signed. All applicants who signed contracts during the HomeBuilder eligibility period between 4 June 2020 and 31 March 2021 will have this extension applied to them.

Applications closed on April 14, however applicants have until April 30, 2023 to submit all supporting documentation.

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