Stabilising building costs mean many homeowners will renovate in 2024 according to the Housing Industry Association (HIA).
It says materials costs have not changed in the past quarter, but shipping costs have lowered, meaning overall it is not as expensive to buy materials to build or renovate.
HIA chief economist Tim Reardon says with interest rates potentially being cut this year and the economy improving he thinks there may be an increase in renovation work.
“The ongoing growth in house prices is slowing, but prices have increased dramatically in the last four years,” Reardon says.
“As a result, people will still continue renovating as the cost won’t be significant compared to the rising value of their homes.”
Reardon says with the average price of a new approved house in the September quarter, up by 11.5%, he believes people will be keener to renovate than move.
“Since the pandemic, people spend more time at home, so in the course of the decade, renovations will continue to be high,” he says.