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“Home building materials have continued to experience only modest cost increases, up by 1.6 per cent in the 2024/25 financial year,” stated HIA Senior Economist, Maurice Tapang.
The ABS today released its Producer Price Index (PPI) series for the June quarter 2025, which covers input costs for a range of industries including mining, manufacturing and housing construction.
“Prices of home building materials has grown at a slower rate than other goods and services, as measured by the Consumer Price Index (CPI),” added Mr Tapang.
“Materials prices have been growing at an annual rate below two per cent for over two years now.
“The cost of building materials rose rapidly due to supply chain disruptions and have eased as markets have been allowed to operate.
“Despite the slowing in the cost of building materials, the cost of building a new home continues to increase.
“The average cost of a new detached house approved in Australia has increased by 4.8 per cent in 2024/25 to $492,410.
“The increase reported by the ABS PPI data does not reflect the additional costs added to new home construction through additional regulatory imposts.
“The relatively more rapid rise in the cost of the average value of a house approval reflects not just changes in consumer preferences, but also due to the additional costs due to the introduction of the National Construction Code 2022 and additional taxes.
“If Australia were to address the housing affordability challenge, governments need to look at reducing the regulatory burdens they impose on new homes,” concluded Mr Tapang.
By material type, the largest price increases in 2024/25 were seen in copper pipes and fittings, up by 13.9 per cent. This was followed by electrical cable and conduit (+8.3 per cent), fibrous cement products (+7.5 per cent), readymixed concrete (+5.7 per cent) and timber doors (+5.2 per cent).
Queensland’s home building industry gathered in celebration as the 12th annual HIA Queensland Building Women Awards honoured outstanding achievement, leadership and influence, shining a spotlight on the remarkable contribution women are making to building more homes across the state.
The Housing Industry Association (HIA) will bring together industry leaders, businesses, community representatives and policymakers in Ballarat on Tuesday for a regional housing roundtable focused on the critical role housing will play in supporting the future growth and prosperity of regional Victoria.
The HIA has been advised that due to an increase of plumbing audit inspection failures, from the 1st of September, the Office of the Technical Regulator (OTR) will be further policing non-compliance in the installation of sanitary plumbing and drainage pipework, namely the bedding of sanitary drainage pipes.
The Housing Industry Association (HIA) has welcomed the establishment of the Senate Economics References Committee Inquiry into social housing, describing it as an important opportunity to identify the reforms needed to deliver more housing of all forms at scale and address the bottlenecks holding back housing supply broadly.