Tradie Shortage Drives Prices Up

Housing supply will remain an issue and building costs will continue to rise until something is done to improve Australian tradie numbers, according to the Housing Industry Association.

HIA Managing Director, Jocelyn Martin, says its modelling shows another  83,348 workers are needed across the top 12 trades in residential construction.

“The shortage of skilled workers is a major impediment to the supply of housing,” she says.

“Labour shortages are resulting in project delays, which add to the cost of construction.”

Australia is facing a chronic shortage of skilled workers, and competition for existing workers is becoming tougher.

“This competition is only expected to increase with a number of significant infrastructure and big build projects in the pipeline,” Martin says.

There are 343,640 apprentices and trainees in training across all sectors, with 100,000 of those in construction.

Martin’s comments come as the Australian Bureau of Statistics reveals the total number of dwellings approved fell 8.2% in July.

ABS head of construction statistics, Daniel Rossi, says despite the overall drop, New South Wales and Western Australia had the strongest rise in private sector house approvals, with both states up 3%.

Master Builders Australia CEO Denita Wawn says there is a slump in apartment approvals.

 “Demand is there, but unless governments make it easier to get projects approved and more workers into the industry, that demand will remain unrealised,” she says.