{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationShrinkflation hits kitchens and bathrooms renovation market
Shrinkflation hits kitchens and bathrooms renovation market
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Speaking at the launch of the HIA Kitchen and Bathroom Report, Mr Reardon said: “Shrinkflation is evident across the economy as households bear the cost of higher mortgage repayments, and home renovations are no exception.
The HIA Kitchens and Bathroom Report provides comprehensive forecasts and unique insights into this important sector of Australia’s residential construction industry and wider economy.
“Affordability and value have become stronger considerations for households looking to renovate or build a new kitchen or bathroom,” added Mr Reardon.
“This adjustment in consumer behaviour is evident in bathrooms more than kitchens. Each new home built in 2023 has on average two bathrooms, down from 2.6 per home in the previous year.
“The building and renovation boom in recent years saw kitchens increase in size, with more appliances and premium fittings. As homeowners spent more time at home, they also spent more money on their home renovation.
“Overall, the renovations market is cooling from the record peak of recent years but remains strong due to the low level of unemployment, house price growth and limited quality housing stock available to purchase.
“During the pandemic, the cost of a new kitchen or bathroom rose as households sought larger living and work from home spaces. The cost of a new kitchen and bathroom is continuing to rise, but this time it is due to higher construction costs.
“Renovation jobs have also been constrained, with a large majority of bathroom jobs involving the same or even smaller footprint. More than half of these jobs last year involved expanding bathroom spaces.
“In contrast, the majority of kitchen renovations in 2023 resulted in an increase in the footprint of the kitchen.
“The cost of construction will stabilise this year as global supply chains are restored, and labour shortages ease.
“There is strong pent-up demand for housing amid record high population growth and a strong renovations segment. This bodes well for a solid volume of home renovations activity in the years ahead, albeit, below the level observed in recent years,” concluded Mr Reardon.
For more information please contact:
New home sales remain at near three-year high
“The cycle of ongoing growth in new home sales was broken in July, with a 6.4 per cent fall compared to June,” stated HIA Senior Economist, Maurice Tapang.
Roundtable must declare a battle on red, white and green tape
“If the Economic Reform Roundtable is serious about developing meaningful and lasting change to boost productivity and the economy, then the number one priority must be on cutting the excessive regulation that is crippling businesses,” said HIA Managing Director, Jocelyn Martin.
Investors vital to increasing housing supply
“Investors were responsible for 41 per cent of new homes financed for construction in the past year,” stated HIA’s Chief Economist, Tim Reardon.
Home building gaining momentum
“The RBA delivered the third rate cut of this easing cycle, bringing their benchmark cash rate down from 3.85 per cent to 3.6 per cent,” stated HIA Senior Economist Tom Devitt.