Building costs remain high despite easing inflation
ABS data shows headline inflation eased to 3.5% in July, but new dwelling construction costs remain elevated despite the broader inflation slowdown.
Headline inflation eased to 3.5% in July 2024, but new dwelling construction costs remain elevated above this trend.
Why are new dwelling building costs still high if inflation is easing?
Builders and related trades face continued cost pressure on new builds. High dwelling costs may affect project margins and client affordability.
Key takeaways
- ABS July data shows headline inflation dropped to 3.5%, signalling broad price pressures are easing.
- New dwelling costs are not following the general inflation trend and remain high.
- Builders may still face tight margins on new construction projects despite wider economic relief.
- No specific relief for construction material or labour costs is indicated by the latest data.
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