Australian building costs have been permanently raised

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Domain reported that building cost inflation is finally easing after shooting up following the pandemic:

Building costs easing

According to Tim Reardon, chief economist of the Housing Industry Association, the rate of cost increases has returned to pre-pandemic levels for most products.

“The rise in material prices is back to normal”, Reardon said. “We saw a 1.1% increase in [material] prices in the year to June”.

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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.