Latest news with #Devitt
Herald Sun
4 days ago
- Business
- Herald Sun
Locked out: Generation faces housing crisis catastrophe
Australia's housing affordability crisis has reached code red status as runaway construction costs threaten to permanently lock out a generation of potential homeowners. A new analysis reveals a construction sector in turmoil, with renovation expenses surging a staggering 43 per cent since late 2019 and building material prices remaining stubbornly elevated, sitting 35.4 per cent above pre-pandemic levels. The crisis, driven by a perfect storm of crippling labour shortages, supply chain disruptions, and soaring prices for essential materials is prompting urgent calls for government intervention to prevent a full-blown housing catastrophe. Exclusive data by the Housing Industry Association shows essential materials are bleeding budgets dry, with the cost of copper pipes and fittings skyrocketing by 14.4 per cent annually and 63.4 per cent since the end of 2019. The cost of electrical cable and conduit are equally alarming, jumping 9.5 per cent annually and a shocking 69.7 per cent since the end of 2019. Even the humble clay brick, a cornerstone of Australian construction, has surged by 8.3 per cent annually and 48.4 per cent since the end of 2019, while timber doors rose by 7.4 per cent annually. RELATED 17,000 ads: Aussie tradie jobs no one wants Demolition dilemmas: Aus homes under threat Build new for less: Top spots under $850K revealed Only materials like plywood, steel beams, plastic sanitary ware, reinforcing steel, sheet metal and other electrical equipment saw a reduction in cost between 4 per cent and 9 per cent. However, it's a drop in the ocean, considering the cost of skilled labour, which saw a 5.5 per cent increase over the 12 months to March, with those looking to build now paying 35.5 per cent more for a home than they did pre Covid. To put it in numbers, the average national build cost now is $484,315, according to March figures by the Bureau of Statistics, $18,832 more than the previous year and $152,969 more since pre-Covid in 2020, when the average build cost just $331,346. HIA senior economist Tom Devitt said while the numbers looked bleak, the cost of construction material was starting to stabilise. 'Some of the numbers shared do show a few materials are still going up really rapidly…but the average building materials have actually really slowed. They are still very much elevated from five years ago but they do look like they've stabilised. 'Labor costs are also still increasing quite rapidly but also not as much as they did three years ago. Our trade report two or three years ago had a single year where trade prices went up 10 per cent.' Mr Devitt said while the cost of materials would come down with time, the real concern going forward was ongoing labour shortages. 'The demand is still going to be outstripping the supply of trades unless the government follows through on what they've been paying lip service to in terms of fast tracking in-demand construction trades,' he said. '(So far) nothing has really progressed from that because the number of skilled trades that have been arriving, relative to overall overseas arrivals, has been minute.' The hidden cost behind Australia's homebuilding struggles An analysis by NextMinute, a leading project management software for tradies, recently shed light on the occupations with the highest vacancy rates and the most job ad listings across Australia, revealing a stark disparity between supply and demand in the trade sector. Official figures indicate that motor mechanics, electricians, and welders are among the most sought-after trades, with thousands of vacancies across all Australian states. However, SEEK job ad volumes suggest the demand is far greater, with listings for electricians alone exceeding six times the official vacancy count. Similarly, there are 9749 listings for mechanics and 2706 for welders, reflecting widespread recruitment challenges in the industry. Despite attractive salaries, several trades remain under-represented in global job searches, such as airconditioning and refrigeration mechanics, who earn over $2000 per week. The United Kingdom leads overseas demand, with UK-based workers conducting thousands of monthly searches for Australian trade jobs. NextMinute CEO Alex Jenks said the discrepancy highlighted the ongoing recruitment challenges faced by trade businesses. These shortages are slowing down projects, driving up costs, and putting pressure on business owners,' he said. 'Interestingly, the countries showing the most interest don't always align with the trades in greatest need. 'For example, airconditioning and refrigeration mechanics have over 500 official vacancies, but little international search activity, pointing to blind spots in global awareness of Australia's workforce needs.' Australia needs to think modular With Australia forecast to fall 262,000 homes short of its national 1.2 million housing target by 2029, Ray White Group senior economist Nerida Conisbee said a modular approach was needed to address ongoing construction concerns. 'It's taking things like trusses off site and making it more of a manufacturing process, as opposed to building them on site where you need far more skilled labour,' she said. 'Another example would be kitchens and bathrooms which are really time consuming and expensive to build on site. So if you just have to assemble them within a house, that makes it a lot cheaper…everything else can be done offshore. 'Another thing to look at would be the way we design houses. One of the reasons why it's so expensive to build is because Australians really love their houses to be different from their neighbours. 'And so, if we're looking at new areas, if we're starting to build houses that are very similar, then it becomes a lot quicker and cheaper to build houses.'
Mercury
4 days ago
- Business
- Mercury
Locked out: Generation faces housing crisis catastrophe
Australia's housing affordability crisis has reached code red status as runaway construction costs threaten to permanently lock out a generation of potential homeowners. A new analysis reveals a construction sector in turmoil, with renovation expenses surging a staggering 43 per cent since late 2019 and building material prices remaining stubbornly elevated, sitting 35.4 per cent above pre-pandemic levels. The crisis, driven by a perfect storm of crippling labour shortages, supply chain disruptions, and soaring prices for essential materials is prompting urgent calls for government intervention to prevent a full-blown housing catastrophe. Exclusive data by the Housing Industry Association shows essential materials are bleeding budgets dry, with the cost of copper pipes and fittings skyrocketing by 14.4 per cent annually and 63.4 per cent since the end of 2019. The cost of electrical cable and conduit are equally alarming, jumping 9.5 per cent annually and a shocking 69.7 per cent since the end of 2019. Even the humble clay brick, a cornerstone of Australian construction, has surged by 8.3 per cent annually and 48.4 per cent since the end of 2019, while timber doors rose by 7.4 per cent annually. RELATED 17,000 ads: Aussie tradie jobs no one wants Demolition dilemmas: Aus homes under threat Build new for less: Top spots under $850K revealed Only materials like plywood, steel beams, plastic sanitary ware, reinforcing steel, sheet metal and other electrical equipment saw a reduction in cost between 4 per cent and 9 per cent. However, it's a drop in the ocean, considering the cost of skilled labour, which saw a 5.5 per cent increase over the 12 months to March, with those looking to build now paying 35.5 per cent more for a home than they did pre Covid. To put it in numbers, the average national build cost now is $484,315, according to March figures by the Bureau of Statistics, $18,832 more than the previous year and $152,969 more since pre-Covid in 2020, when the average build cost just $331,346. HIA senior economist Tom Devitt said while the numbers looked bleak, the cost of construction material was starting to stabilise. 'Some of the numbers shared do show a few materials are still going up really rapidly…but the average building materials have actually really slowed. They are still very much elevated from five years ago but they do look like they've stabilised. 'Labor costs are also still increasing quite rapidly but also not as much as they did three years ago. Our trade report two or three years ago had a single year where trade prices went up 10 per cent.' Mr Devitt said while the cost of materials would come down with time, the real concern going forward was ongoing labour shortages. 'The demand is still going to be outstripping the supply of trades unless the government follows through on what they've been paying lip service to in terms of fast tracking in-demand construction trades,' he said. '(So far) nothing has really progressed from that because the number of skilled trades that have been arriving, relative to overall overseas arrivals, has been minute.' The hidden cost behind Australia's homebuilding struggles An analysis by NextMinute, a leading project management software for tradies, recently shed light on the occupations with the highest vacancy rates and the most job ad listings across Australia, revealing a stark disparity between supply and demand in the trade sector. Official figures indicate that motor mechanics, electricians, and welders are among the most sought-after trades, with thousands of vacancies across all Australian states. However, SEEK job ad volumes suggest the demand is far greater, with listings for electricians alone exceeding six times the official vacancy count. Similarly, there are 9749 listings for mechanics and 2706 for welders, reflecting widespread recruitment challenges in the industry. Despite attractive salaries, several trades remain under-represented in global job searches, such as airconditioning and refrigeration mechanics, who earn over $2000 per week. The United Kingdom leads overseas demand, with UK-based workers conducting thousands of monthly searches for Australian trade jobs. NextMinute CEO Alex Jenks said the discrepancy highlighted the ongoing recruitment challenges faced by trade businesses. These shortages are slowing down projects, driving up costs, and putting pressure on business owners,' he said. 'Interestingly, the countries showing the most interest don't always align with the trades in greatest need. 'For example, airconditioning and refrigeration mechanics have over 500 official vacancies, but little international search activity, pointing to blind spots in global awareness of Australia's workforce needs.' Australia needs to think modular With Australia forecast to fall 262,000 homes short of its national 1.2 million housing target by 2029, Ray White Group senior economist Nerida Conisbee said a modular approach was needed to address ongoing construction concerns. 'It's taking things like trusses off site and making it more of a manufacturing process, as opposed to building them on site where you need far more skilled labour,' she said. 'Another example would be kitchens and bathrooms which are really time consuming and expensive to build on site. So if you just have to assemble them within a house, that makes it a lot cheaper…everything else can be done offshore. 'Another thing to look at would be the way we design houses. One of the reasons why it's so expensive to build is because Australians really love their houses to be different from their neighbours. 'And so, if we're looking at new areas, if we're starting to build houses that are very similar, then it becomes a lot quicker and cheaper to build houses.'
Yahoo
5 days ago
- Business
- Yahoo
Why Shares of Uber Are Sinking Today (Hint: It Has to do With Tesla)
Bloomberg is reporting that Tesla's robotaxis will soon debut in Austin. A Wall Street analyst is concerned about what this could mean for Uber. Uber has positioned itself as a partner for the autonomous driving revolution. 10 stocks we like better than Uber Technologies › Shares of the ride-hailing giant Uber (NYSE: UBER) traded roughly 4.5% lower in the final half-hour of trading today after a Wall Street analyst cited a potential threat to Uber's business model and long-term strategy. In a research note, Wedbush analyst Scott Devitt maintained a "neutral" rating on Uber and an $85 price target but noted that Tesla's soon-to-launch robotaxis present a threat to the company's long-term vision. The news comes after Bloomberg reported that Tesla plans to launch robotaxis in Austin on June 12. In the note, Devitt said that a fully autonomous ride-hailing fleet could significantly disrupt Uber's human-powered fleet. Tesla's CEO Elon Musk has also indicated that Tesla may try and set up its own ride-hailing network rather than partnering with an existing player. Meanwhile, Uber has positioned itself as the strategic partner for autonomous vehicle companies, having already formed partnerships with Waymo and Pony AI, among others. Uber believes that its massive fleet, operational platform, and regulatory expertise make it an ideal partner for self-driving companies looking to scale. While the market seems to be taking Wedbush's concerns seriously, I think it's still too early to say that Uber is in trouble. It will take Tesla time to scale, and it could still take awhile for autonomous ride-sharing to gain widespread traction. Plus, Musk and Tesla have never run a ride-hailing fleet before. They may still end up partnering with Uber. Uber has transformed itself financially, becoming profitable and generating significant free cash flow. I also think there will likely be more than one winner in the autonomous space. Interested investors can buy the dip here. Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy. Why Shares of Uber Are Sinking Today (Hint: It Has to do With Tesla) was originally published by The Motley Fool Sign in to access your portfolio
Sydney Morning Herald
13-05-2025
- Business
- Sydney Morning Herald
How the cost of building a new house just hit a record high
He also warned that the construction workforce is not large enough to build enough homes to meet the federal government's target of 1.2 million new homes in five years, and the ongoing infrastructure projects such as roads, schools and hospitals. Not enough new workers were joining the industry, he said, especially as experienced workers retire or semi-retire. 'When you don't have enough workers, what happens? Workers go to the highest bidder and that means if you're going to go ahead with your project, you're going to be paying much higher wages.' He said the cost of materials was generally much higher than six years ago, especially for timber, ceramic goods and electrical equipment. But he thought it unlikely labour costs would decline, especially as some of the larger unions negotiate increases in wages from year to year. Loading Housing Industry Association senior economist Tom Devitt said the recent rise was largely due to labour cost increases, while the unemployment rate holds at historic lows. 'The shortage of skilled trades for construction sectors is particularly acute,' he said, calling for a boost to domestic workforce capabilities as well as skilled migration. He noted changes to the National Construction Code to improve energy efficiency, which he thought was a worthwhile objective, but said it resulted in costs that were passed on to home buyers. He added that the figures on the cost of building did not include the rising cost of land. Despite the national target of 1.2 million new homes in five years, Devitt forecasts that the nation will struggle to deliver a million in that time frame. 'It doesn't bode well for affordability, especially for home buyers.' Sydney builder Robert Faraj, director of Pioneer Building Group, has been dealing with the impact of rising materials costs on his projects. For example, he made an order of plasterboard in mid-February. It was delivered on March 2, but on March 1 the supplier increased prices by 7 per cent, leaving him paying the March price. That meant it cost $40,000 for enough plasterboard for four, four-bedroom houses. The product usually increases in price four times a year. Electrical cable for light switches has increased, too, among others. 'It didn't jump $95 or $100 in a week. Every second month [the suppliers say] 'Oh hey, 10 per cent, 10 per cent, 10 per cent,'' he said. But to maintain his reputation and the quality of his work, he does not want to look for the cheapest quote. He focuses on high-end, bespoke, luxury-built homes as well as commercial construction. 'You're judged on your worst job, not your best job, so we're always trying to maintain a standard and a value of what we give our clients,' he said. He also can't charge clients more once they have agreed on a price for a build. 'How? They can't go back to the bank and say, 'hey bank, Robert said the plasterboard has gone up.'' As a result, he does not see quite as much work available as previously. 'Everyone's saying it's not worth it, so we're not seeing as much come through the pipeline of approvals of work,' he said. 'We've got some really good tradies in this country and most of them are busy at the moment doing all these tunnels.'
Yahoo
08-05-2025
- Business
- Yahoo
Uber Rating Cut to Neutral at Wedbush
Uber (NYSE:UBER) slides to a Neutral rating at Wedbush as its risk/reward profile is now viewed as balanced after years of share gains. Analyst Scott Devitt noted that Uber's post-pandemic recovery is largely priced in, with the magnitude of earnings beats shrinking as the business model stabilized. While management has executed well across mobility and delivery initiatives, the lack of fresh catalystscoupled with shares trading at a premium to peersleaves limited upside if demand softens. Warning! GuruFocus has detected 6 Warning Sign with UBER. Devitt pointed out that Uber's premium valuation versus the broader mobility group could be hard to defend in a cyclical downturn, especially as near-term growth drivers like new service launches and pricing tweaks lose luster. With 44 Buy-equivalent ratings on Wall Street but few obvious growth surprises ahead, Wedbush pegged the 12-month price target at $85, implying modest upside from current levels. Why it matters: A Neutral rating signals that investors should temper expectations for outsized gains and focus on demand stability, cost controls and margin resilience instead of hoping for standout beats. Investors will be watching upcoming quarterly results and guidance updates to see if Uber can unearth new growth levers or if it must settle into a more mature, cyclical trajectory. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
