When we talk about housing affordability, much of the discussion centres around land prices, interest rates and the availability of housing. But there’s another major factor that often gets overlooked, the actual cost of building a home.
Over the past five years, the cost of constructing a new home in Australia has increased by more than 50 per cent. That’s a staggering increase, particularly when you consider that wages haven’t grown at anywhere near the same rate.
To put that into perspective, a home that cost $350,000 to build five years ago could now cost more than $525,000, and that’s before purchasing the land.
What’s driving these increases?
It’s not one single factor, but a combination of rising material costs, labour shortages, supply chain pressures and increasing construction requirements.
Some of the figures are extraordinary. Since 2021, roof tiles have increased 77 per cent, windows 73 per cent, plaster products 49 per cent, copper fittings 48 per cent and structural steel 41 per cent.
Add rising labour costs, insurance, compliance requirements and the cost of delivering infrastructure, and it’s easy to understand why builders are under pressure.
Here on the Fraser Coast, where population growth continues to drive demand for new housing, these increases present a real challenge for first-home buyers, families and developers alike.
The positive news is that demand for housing remains, and our region continues to offer opportunities for growth and investment.
However, improving housing affordability isn’t simply about releasing more land. We also need to focus on construction efficiency, reducing unnecessary regulatory costs, improving infrastructure delivery and supporting innovation in building methods.
The challenge isn’t just making more homes available, it’s making them affordable to build.
And that’s a conversation our industry, governments and communities need to keep having.
