Understanding The Rising Cost of Building and Renovating Houses

Category: Tips
Date: November 28, 2023

UNDERSTANDING THE RISING COST OF BUILDING AND RENOVATING HOUSES

Building a new home or renovating your existing home is exciting – but let’s not sugarcoat it – the costs can sometimes catch you by surprise. What is important to understand is that builders and construction companies aren’t trying to overcharge you. The increasing expenses are driven by rising labour costs, high demand for tradespeople, and elevated prices for supplies.

Understanding these increases will help you to plan, predict and prepare for the bottom line, when quoting for a new house or renovation.

Trades

Hiring skilled professionals like carpenters, plumbers, and electricians is becoming more expensive. The booming property market has caused a surge in demand, leading to higher costs, placing upward pressure on the price of skilled labour. Moreover, obtaining certifications and insurance has become pricier, which is another cost that is borne by the consumer.

Supplies

The price of materials such as timber, concrete, and fixtures are also contributing to the overall increase in building expenses. Global demand, especially for timber, combined with pandemic-related delays and disruptions, has caused shortages and price hikes.

Labour

The cost of labour has a significant influence on the cost of building new homes in Australia. As demand continues to rise, wages for tradespeople and skilled labourers also increase which leads directly to a higher build cost for the consumer.

Regulations

Building regulations and permit fees add to the increased cost of constructing a new home. The government requires builders to adhere to minimum standards for residential construction, which often means using more expensive materials and installations.

So, if you’re planning to build a new house on the Sunshine Coast or renovate your existing one, keep these factors in mind.  And when it comes to choosing a builder, select one who values transparency and will navigate and guide you through these rising costs. At Campbell Construction Co, we believe in keeping our clients informed every step of the way. Because for us, ‘care’ isn’t just a word – it’s built into everything we do.