Cost to build a house up $94k since 2021 as it sends construction companies down
Costs to build homes have risen by more than $94,000 in the past 15 months amid warnings half of Australian construction firms could be forced to close. The Australian Bureau of Statistics revealed in its latest building approvals data that the median price for building a new home was $413,436 in May. This marks a $94,177 increase in the cost to build a new home more than a year ago when prices averaged just $319,259 in February 2021. Homeowners typically sign a fixed price contract with their building company the day the project starts – which protects the signer but can sometimes leave the trade in trouble. Soaring material costs, the Covid pandemic, rising inflation and war in Ukraine have fueled global supply shortages and forced prices to skyrocket, sending many companies into chaos. Paul Viney, president of the Victorian Association of Consulting Architects, said builders had raised prices to protect themselves. ‘Builders are afraid of making losses [so] they build sig...