Trade shortages continue despite housing market slowdown
The HIA warns Australia's residential construction sector still faces a critical skilled trades shortage, even as the housing market slows. The shortage threatens the industry's capacity to meet future demand.
Why are trade shortages still a problem even though the housing market is slowing down?
Affects builders, plumbers, electricians and carpenters. Ongoing shortages may push up subcontract costs and delay project timelines for small operators.
Key takeaways
- HIA says skilled trade shortages in residential construction persist despite a softer housing market.
- The slowdown has not been enough to ease pressure on tradies or free up workforce capacity.
- Industry warns shortages could limit the sector's ability to ramp up when demand returns.
- Training and workforce pipelines remain a key concern for the building industry going forward.
Related
Trades shortages persist as work on the ground remains solid
Skilled trade shortages remain widespread across Australia. The HIA says demand for workers is being supported by the recovery in home building activity over the past year.
Why it matters: Builders, carpenters and other residential trades should expect continued tight labour supply. That can mean higher wage pressure, harder hiring and longer lead times on jobs.
WA passes new payment protection laws for subcontractors
Western Australia's Parliament has passed new payment protection laws for subcontractors. The changes, made through an amendment to the Building and Construction Industry (Security of Payment) legislation, aim to give subcontractors stronger protection against insolvency.
Why it matters: Subcontractors in WA, including plumbers, electricians, carpenters and other trades, get stronger protection if a head contractor becomes insolvent. This could reduce the risk of unpaid work and cash flow problems.
Trade shortages persist across Australian residential markets
The latest HIA Trades Report found skilled trade shortages across every Australian housing market and every trade in the September quarter of 2026. The shortages remain widespread.
Why it matters: Builders, carpenters, plumbers, electricians and other residential trades face ongoing labour shortages. That can mean delayed projects, harder hiring and more bargaining power for skilled workers.