Counting The Cost: Why Has Building Become So Expensive?

Have you ever wondered why the cost of building seems so high? In this article, we will explore why building projects tend to be so expensive and clarify some of the complexities in the construction industry. If you want to know more about common mistakes to avoid or how to know the best way to navigate your project, book a free consultation with one of our team. 

Materials Costs

The cost of materials tends to form the bulk of building project expenses. The COVID-19 pandemic caused a global shortage of materials, along with increased building demand, supply chain disruptions and subsequent transportation costs. This was the perfect recipe for significant delays and substantial cost increases.

 Skilled Labour Shortages

Skilled labour is an essential component of any successful building project. The current demand for qualified workers is higher than the available supply, continuing to drive up the cost of building.

Regulatory Compliance

Building projects are subject to many regulations and compliance standards, which involve fees for applications, permits and building approvals to councils and other regulatory authorities such as the Construction Industry Training Board.  Navigating the regulatory landscape is complex and time-consuming, requiring additional time, resources, and expertise, contributing to the overall expense of construction projects.

 Land and Property Costs

Australia has witnessed substantial increases in land and property prices. This surge can be attributed primarily to the heightened demand for land following the onset of the pandemic. With population growth driving an increased demand for land, developers find themselves in a position to command top dollar for available plots. Consequently, offers often exceed the anticipated price range. The increased cost of land, coupled with the increased labour and material costs, has made property even more expensive.

Design Complexity

Finally, the complexity of the design and the difficulty of the building affect the price. The harder the project is to build, the more it is likely to cost. While unique designs can enhance a building's aesthetic appeal and functionality, they often come with a higher price tag.

While these factors can contribute to the high construction cost, they are essential components to get right to ensure safe, durable, and functional spaces for your home.

 Navigating Construction Cost

Are you unsure how to best navigate the complex environment of construction costs? We are here to help! Book a consultation with our team to see how we can help you avoid common mistakes and get the most out of your building project.