Alboflation destroys builders


The Albanese government has engineered foreverflation in home building:

Building costs could skyrocket by more than 30% in some ­cities over the coming four years as strong demand fuelled by government spending compounds the pressures of rising wages and continued labour shortages.

Industry experts say high costs will make it hard to build affordable housing, and that conditions are unlikely to change for several years given the Labor government’s aim to build 1.2 million homes by 2030.

Data from engineering group Arcadis shows that building costs are expected to increase by 28% in Perth, 34.1% in Melbourne and upwards of 39% in Sydney between 2023 and 2028, while Brisbane is tipped to see costs rise 34.4% after registering the strongest growth this year amid above-inflation wage increases.

This schemozzle is a pure expression of macroeconomic bastardry.


Three easy steps brought the imbroglio to pass:

  • pump prime immigration to boost housing demand;
  • ban foreign tradies from being a part of that flow
Grattan Institute migrants in construction
  • cower while a gas cartel establishes a permanent power shock to drive energy-intensive building materials crazy.
Residential construction costs

It is a simple recipe for a permanent housing crisis that the government has no intention of fixing.


Albo wants higher property prices.

End of story.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.