The cost of house building materials has stabilised for the first time since before the pandemic, new data shows.
Producer Price Indexes released this week by the Australian Bureau of Statistics show that house construction inputs recorded no change in the September 2023 quarter, compared to the previous quarter.
According to HIA Senior Economist Tom Devitt, this sees the cost of house building materials just 4.4% higher over the year, compared to a 17.3% annual increase in 2021/22.
“The slowing in cost of house building inputs reflects a significant easing in the materials constraints that plagued the industry during the pandemic”, Devitt says, adding that some of the worst affected products during the pandemic are now seeing outright declines in price.
“Last year, structural timber and reinforcing steel prices were both up by more than 60 per cent on pre-pandemic levels.
“In the last year, they have declined by 8.8% and 5.3% respectively. Steel beams and sections, which were up by more than 50% a year ago, subsequently declined by 17.2%.
Skilled trades, however, remain in acute shortage, Devitt says.
The HIA Trades Report, also released this week, shows that availability deteriorated marginally in the September quarter, most particularly for bricklayers, roofers, carpenters, and ceramic tilers.
