Global Construction Costs Under Pressure into 2023
The Covid-19 pandemic and the war in Ukraine mean global pressures on…
11 July 2022
The rising cost of construction materials shows no signs of slowing since the Covid-19 pandemic hit. As widespread shortages of key products continue to plague the industry in New Zealand, they do so too in Australia.
There are significant delays in acquiring materials, such as exterior and interior cladding, which are causing long delays in the residential building industry. Some shortages are doubling build times. Some projects are experiencing extended wait times, from five months for completion, to 12 months.
Combined Building Supplies Cooperative chairperson Carl Taylor said that the delays were the result of increased demand. Residential building consents hit record highs and a scarcity of labour is combined with the lack of materials.
Prices for building a new dwelling have increased by 16%, compared with same period in 2020.
Taylor said clear communication within the industry was critical, but added that he thought the NZ government needed to have a constructive look into how supply issues could be addressed.