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Smaller builders suffer as HomeBuilder leads to spike in material costs

January 29, 2021 HomeBuilder has provided a shot in the arm to the housing sector, with households taking on record levels of debt to fuel the nation’s economic recovery. But increased demand has already pushed up the price of materials and labour, squeezing the budgets of home-buyers and renovators. According to Wednesday’s Consumer Price Index, costs associated with the maintenance and repair of dwellings rose 0.7% in the December quarter and 1.7% over the year. Phil Dwyer, the head of small builder lobby group Builders Collective of Australia, told  The New Daily the price of building materials shot up after HomeBuilder was announced in June, with most smaller builders unaware of the rising costs until they hit the shops.

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