Latest news with #HousingIndustryAssociation
Daily Telegraph
4 days ago
- Business
- Daily Telegraph
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.'
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.'
Daily Mail
21-05-2025
- Business
- Daily Mail
Why first-time homeowners need to 'get in before the crowd' and buy now
Hopeful home buyers have been urged to pull the trigger now before a first home assistance scheme causes property prices to surge. From January 2026, the federal government will guarantee half the deposit on Australians' first homes, slashing the requisite from 10 per cent to five per cent. A deposit of just $50,000 would be enough to purchase a $1million home. However, industry experts warned the plan will fuel housing stress by opening the door to a flood of demand in a low-supply market. Michael Yardney from Metropole Property Strategists has predicted vendors will react to the scheme by raising house prices - making homes less affordable for future generations of entry-level buyers. 'Property prices will skyrocket in early 2026 when Labor's five per cent deposit scheme comes into effect – get in before the crowd,' he told the West Australian. 'Sure, prices seem expensive but that's what your parents said. Who wouldn't like to buy their parents' home for the price they paid.' Tim Reardon, an economist from the Housing Industry Association, also encouraged first-time buyers to buy now before the scheme takes effect. 'The housing affordability problem will get significantly worse over the next three years as we complete a low volume of homes, and population growth remains extraordinarily high,' he said. Labor's Homes for Australia Plan also promises to shore up renters' rights. The Albanese government has vowed to build 100,000 homes exclusively for first-time buyers to balance demand for property introduced by its deposit scheme. They also believe their $43billion commitment to the housing industry - eight times more than the Coalition invested in a decade - will see the construction of 1.2million homes over the next five years. But critics have repeatedly slammed Labor for slow progress on its plans. According to data released by the Australian Bureau of Statistics in April, over one million homes need to be built by 2029 to keep up with projected demand. Australia needs to build 57,000 homes per quarter between 2024 and 2029. The current rate sits about 20,000 houses below that requirement. It follows a strong period of construction during the pandemic. Experts say growth in the industry has been hampered by labour and materials shortages, which the government has promised they are addressing. Slow planning processes and approvals, and high interest rates have also hindered construction. The number of commenced and finished construction projects were down in 2024 compared to previous quarters.
Perth Now
06-05-2025
- Business
- Perth Now
Crown boss to offload $7m mansion for penthouse downsizer
It's just as well blue-chip businessman John Van Der Wielen doesn't get too emotionally attached to his properties — otherwise, letting go of his recently listed Attadale residence might be a challenge. The luxurious five-bedroom, four-bathroom home, set on a sprawling 974sqm riverside block, has hit the market with a price in the $7 million range. Mr Van Der Wielen, who chairs both Crown Perth and the wildly successful nerve regeneration biotech Orthocell, is looking to downsize to a penthouse apartment. He and his wife Robin — founder of Perth-based Flower Box Home Fragrance — are ready for a more 'lock-up-and-leave' lifestyle to accommodate their frequent travels. Despite the many fond memories created in the home, Van Der Wielen admits he's never been one to get too sentimental about real estate — even after living in Sydney (twice), London (twice) and Luxembourg. 'I've moved around a lot in the past 20 years,' he said. 'Selling houses has never worried me because I don't get too emotionally attached.' This pragmatic approach likely makes it easier to part with the spectacular three-level residence, which features panoramic river views, a private lift, smart wiring, commercial-grade ducted air conditioning, underfloor heating in the ensuite, and advanced security systems. The luxurious five-bedroom, four-bathroom home is set on a sprawling 974sqm riverside block. Credit: supplied The home also includes multiple fireplaces, a heated magnesium pool and a six-car garage complete with a full bathroom. Mont Property's Matthew Podesta said the property was a finalist in the Housing Industry Association's awards when it was built. 'This home rivals some of the finest international luxury hotels — its craftsmanship, premium fixtures, and impeccable finishes truly set it apart,' he said. The home was a finalist in the Housing Industry Association's awards when it was built. Credit: supplied John Van Der Wielen's home in Attadale Credit: supplied Van Der Wielen's frequent travel for Orthocell — whose board includes esteemed names such as Professor Fiona Wood and Kim Beazley — is part of what motivates the move. He also serves as a non-executive director with the Royal Flying Doctor Service. With his granddaughter now based in Scotland, he anticipates spending more time in the UK and is even considering purchasing a property there. Still, no matter how far his travels take him, the former Hamilton Hill High School student says Perth will always be home. John Van Der Wielen's home in Attadale. Credit: supplied
