Homebuilder drives up construction costs

Thursday, 19 August 2021

CoreLogic has released its latest Cordell Housing Index Price (CHIP) results, which shows that construction costs are rising on the back of HomeBuilder stimulus.

Residential construction costs increase 1.4% in the three months to June 2021, outpacing the Consumer Price Index (CPI) of 0.8% for the same period. It was the largest quarterly change since the third quarter of 2014.

Residential construction costs also grew at 3.9%:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.