Industry challenges ongoing

COVID, climate change, war in Europe, the cost of living, an election, interest rate rises, significant construction industry challenges -> understandably, consumer confidence is dropping.

The upheaval, up-up-upping of prices and uncertainty in the construction industry is a global problem. It’s not just Canberra, but the whole country and the whole world experiencing problems. This is beyond your control and beyond our control. It is also beyond the control of your builder and all of their sub-contracting trades-people and suppliers. Understanding, patience, resilience and flexibility are required by everyone. All the players are stressed. Nobody is winning right now.

Please read this info sheet published by the Housing Industry Association last week.

Also read this Master Builders Association social media post published the day after this blog.

Also read this Facebook post we did about an article in the Australian Financial Review which states that average NEW home build costs in Australia have gone up 23% in the 12 months to April this year.

This is a big, hairy, complex problem. We do not have the answers. If you cannot cope with this level of uncertainty, do not commence design or construction work. Every project and every client is different. It is very important that you do your own risk assessment.

We pride ourselves on keeping you well-informed about what we are seeing in the industry. In the past we have used our experience, plus a decade’s worth of DATA working on more than 200 residential architecture projects, to help you make informed decisions. Unfortunately, in these genuinely unprecedented times, our historical data and past trends are of little value.

Slowly but surely, Light House will continue to deliver high quality, integrated, architecture and science services. The cost of implementing that work is now very hard to gauge.

Sincerely,

Jenny Edwards, Data nerd & lover of quality Canberra housing & all the people who make it possible

More info for those who like multiple sources (google will find plenty more)
The quotes below are from CoreLogic’s Construction Cost Estimation Manager, John Bennett, and Research Director, Tim Lawless. They are taken from this article published on April 13.

"Timber costs continue to rise, with cladding, decking and other timber items affected. Steep rises in metal prices are also now flowing through to the market, with structural steel, fixings and metal components hit hard."

"We continued to see volatility in the rest of the market, with imported products the most vulnerable due to elevated shipping costs.”

"Rising fuel costs are also on the radar and we have continued to see further increases in the cost of other materials."

"Considering the record number of houses approved for construction during the HomeBuilder grant along with additional rebuild and repair work from the recent floods, demand for construction materials is likely to remain high.”

"At the same time, supply-side challenges persist.”

"A shortage of key materials such as structural timbers and metal products along with higher fuel costs, and labour shortages, is likely to keep upward pressure on building costs for some time yet."

For some international flavour
A US article published on the 8th April: 10 Inflation Price Hikes That Will Increase the Cost of Your Home Projects This Year. It highlights concrete, plasterboard, timber, steel, paint, insulation, plastic components (eg. plumbing), furnishings, appliances and tools and general hardware as facing significant prices increases… basically everything you need in a house.