A knock-on effect from the building boom is a squeeze on builders, particularly smaller ones, to ensure they have enough materials to complete builds they are committed to within the usual timeframes.
The number of new homes commencing construction in 2021 is more than 20 percent higher than the previous record in 2018. This is driven by HomeBuilder grants, record low interest rates and the influx of people moving to regional areas.
Hotondo Homes Shepparton office manager and sales representative, Jody Mintern, has emphasised how much of an influx there has been for new builds and how they are doing their best to get on site to start and complete each new construction as soon as possible given building materials such as timber are in short supply.
“Every builder is facing material shortages and we are doing our best to make sure our customers have their builds completed in time,” said Jody.
“The timber industry was already recovering from the bushfires and trying to catch up after that, and now the building boom has added to the immeasurable pressure.”
Domestic production of structural timber has always required supplementation from imported timber to meet the demand for timber in Australia. Around 20 percent of timber used for the construction of new homes was imported in the last five years.
While Australian production of timber has risen 17 percent, importation of timber will continue to be necessary to meet demand.
Timber and shipping prices have also inflated due to the surging international demand for housing and renovations, combined with growing delays in delivery of key materials and products.
A HIA Trades Report stated that this is the steepest trade deficit nationally since 2004, especially critical outside of Sydney and Melbourne. By trade, the steepest shortages are in bricklaying, ceramic tiling, roofing and carpentry. Prices are subsequently rising, especially in site preparation and roofing.
HIA expects these constraints to be addressed by both a supply and demand response towards the end of the year and into 2022. International supply chains should be better equipped to cope with demand and the housing build frenzy will start to slow.
