The cost of building a new house is rising as almost every category of building material becomes more expensive.
Almost every category of building materials has increased. Steel products, which includes beams and sections and reinforcing steel, leading the way, jumping 42.1 per cent in the year ending March 2022.Property listingsProperty prices may be falling for the established housing market, but new homes are bucking the trend and have become the canary in the coal mine, as far as inflation goes.
Australians spent big on their homes during lockdown, experts say, as construction for freestanding homes and renovation expenditure hit record highs.“It’s been a rollercoaster … two years ago, contracts were being terminated because everybody thought they would lose their job. All of a sudden, JobKeeper and HomeBuilder came along and people weren’t travelling, the building industry went from no work to too much work,” Wawn said.
Before the pandemic, the construction of freestanding houses was slowing, with about 105,000 being built, the Association’s figures show.By the end of 2021, that had increased by almost 50 per cent. That has now jumped to 80 per cent more homes under construction than pre-COVID, Reardon said. “It’s those additional shocks that disrupted the efficient operations of the industry and have added costs throughout the supply chain. All those factors compound through, and those costs are borne through by those building new homes.”Pat Scala
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