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{{propApi.successMessage}} {{region}} Change locationHome building materials prices still slower than CPI
Home building materials prices still slower than CPI
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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).
Home building inputs and average detached approval values
Housing progress at roundtable important but more work to do
“The Housing Industry Association (HIA) is pleased to see housing feature prominently at this week’s Economic Reform Roundtable particularly on cutting excessive red tape and streamlining environmental approvals, but as Treasurer Jim Chalmers has indicated more work is needed on easing housing construction,” said HIA Managing Director, Jocelyn Martin.
HIA welcomes $50 Million Housing Support Package for Flood-Hit Residents
“As an industry association whose members are embedded in the Hunter and Mid North Coast communities, HIA welcomes the $50 million Housing Support Package announced by the Albanese and Minns Governments,” said HIA Hunter Executive Director Craig Jennion.
HIA welcomes $300 million plantation grant to boost timber supply
“The Housing Industry Association (HIA) welcomes today’s announcement by the Albanese Government in providing $300 million to support Australia’s future wood supply to meet increasing housing needs across the country,” said HIA Managing Director Jocelyn Martin.
HomeGrown grant key to rebuilding the Territory
“Today’s announcement on the successful take up of the HomeGrown Territory grant highlights the importance of this key housing support scheme that is spurring economic growth and kickstarting home building across the Territory,” stated HIA Executive Director - Northern Territory, Luis Espinoza.