{{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
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
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:
Closing Loopholes Independent Statutory Review Draft Report
HIA has provided a further submission to the Closing the Loopholes Statutory Review on the release of the Draft Report, challenging the appropriateness of the government’s workplace relations reforms.
HIA launches 2026 Victorian State Election Policy Agenda
Today HIA launched its 2026 Victorian State Election Policy Agenda that calls on all political parties to commit to meaningful steps that will improve the challenging and uncertain environment for all who work in and rely on Victoria’s vitally important home building industry.
Molonglo Town Centre Master Plan progress but immediate barriers remain
The ACT Government’s release of the Molonglo Town Centre Master Plan signals progress on one of Canberra’s key future growth areas, but for builders and developers, the reality is that this project will do little to improve current market conditions or near-term housing supply.
HIA welcomes NCC pause Bill passing Parliament
The Housing Industry Association (HIA) has welcomed the passage of the Building Amendment Bill 2026 through the Tasmanian Parliament today, while noting that the final form of the legislation delivers a more limited outcome than originally proposed.