The rising cost of building a new home has finally started to ease.
Australians building a home faced 20% increases in the year to September 2022, as Covid-induced trade and materials shortages drove up costs.
The latest Cordell Construction Cost Index (CCCI) shows construction costs are now rising at their slowest rate in four years and says this may be an early sign that pressures are stabilising within the building sector.
The report tracks the cost to build a typical dwelling and says costs only increased by 0.5% in the September quarter - the smallest increase since June 2019.
“This is the fourth consecutive slowdown in the quarterly pace of growth for residential construction costs,” the report says.
Construction Cost Estimation Manager, John Bennett, says cost pressures in construction are shifting from an issue of materials to labour.
“While material costs appear to have stabilised in general, labour costs have had a number of new pressures applied,” he says.