Data from the Australian Bureau of Statistics (ABS) shows that the cost of building a new home was $76,715 higher on average in April than at the same time a year ago. This compares with a year-on-year cost increase of $68,137 in March.
BIS Oxford Economics senior economist Maree Kilroy says the strong growth in building costs is likely to continue into the 2022-23 financial year, and she warns that more residential builders can be expected to collapse:
“Given the huge backlog of work and strength of global commodity prices, we believe that strong building cost growth will continue into the next financial year,” said Ms Kilroy, a BIS Oxford Economics senior economist.
