National housing construction costs explode & low stocks continue

National housing construction costs explode & low stocks continue

Supply chain disruptions, shortage of construction materials and continued rise in demand for new builds caused a spike in construction costs.

CoreLogic’s Research Director Tim Lawless said, “The quarterly rate of growth in construction costs is happening everywhere and is not restricted to one city or state, it’s a national trend”.

“There was a much bigger increase in our index when the GST was introduced, however outside of that structural adjustment this is by far the biggest quarterly change on record. This would be the largest market driven increase we’ve seen.

“This construction cost inflation could continue for another 12 to 18 months. It’s unlikely the industry can absorb a cost increase this significant into their margins and higher construction costs will ultimately be passed on to the consumer, placing further upwards pressure on the price of a new dwelling or renovation,” he said.

Increased construction costs, shortage of tradies & materials, is causing disruptions & further delays in new builds and affects the releases from builders contributing to the low supply of stock in the market.

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