As we know, Australia has been hit hard with a material shortage crisis in response to the pandemic and our 2021 devastating bushfires. As a result, the construction industry has experienced material costs inflating significantly.
Referencing the Property Update, before Covid-19, 20% of Australia’s structural timber was supplied abroad. With the effects of the pandemic, the cost of timber has risen 30 to 40%, which has been reflected globally.
So, does this mean you should wait out on your next construction project?
The answer is no, and here is why
- Many people are delaying their construction projects until mid-2022 in hopes that costs will drop. Unfortunately, this may cause a spike in projects during this time. If this is the case, there may be not enough materials available to meet the demand. This increase may also make it challenging to find a construction company that is available during this time.
- According to the financial review, it is predicted for prices to increase further through 2022 to try to meet the demand. Further research has stated that though the timber shortage may improve, the prices most likely will not.
- Material prices inflate an average of 5% per year around April, which may continue to reflect in 2022.
As 2022 is quickly approaching, we want to make sure your dream home becomes a reality! We hope this information helps when making your decision on when to start your dream home.
The ATN Constructions calendar is quickly filling up for 2022, so if you are considering building your dream home, ensure to contact us to lock in your spot!