Trade shortages continue despite housing market slowdown
The HIA warns Australia's residential construction sector still faces serious skilled trades shortages, even as the housing market cools. The shortage is expected to hamper recovery when demand picks back up.
Why are there still trade shortages even though the housing market has slowed down?
Affects builders, plumbers, electricians and carpenters directly. Ongoing shortages mean project delays, higher subcontractor costs and difficulty winning or completing jobs on time.
Key takeaways
- HIA says skilled trade shortages in residential construction remain severe despite slower housing demand.
- A market slowdown hasn't eased workforce pressures, leaving tradies stretched across fewer but still complex projects.
- When housing demand rebounds, shortages could worsen further if the pipeline of new workers isn't built now.
- Builders, plumbers, electricians and carpenters are among the trades most exposed to ongoing workforce gaps.
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.