What is going on with the building industry?

Almost all builders are currently experiencing longer than usual wait times for supplies, and as labor costs rise, so do the cost for the clients.

REIWA states that the building costs have risen by 11% compared to last year.

As building materials rise in cost, the builders, unfortunately, need to pass this cost onto the client. Rising in cost is timber, metal materials, plasterboard, and fiber cement, amongst others.

It seems that it is unlikely that the costs will improve in the foreseeable future.

The delays for homes to be completed are continuing to increase. This also leads to a competitive rental market and stock shortage as clients need to keep renting while they wait for their homes to be ready to move in.

Also impacting build times is labor shortages, with the builders struggling to find workers. REIWA is unsure when the prices will normalize.

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