Understanding the true cost of building a house

While it will cost more to build a house in 2023 than in 2022, the good news is that cost increases have slowed from last year’s unprecedented price rises.

Numerous reports suggest the industry is witnessing a slow but significant increase in building costs. This is primarily due to labour shortages, material escalations, climate changes, and stringent requirements. Meanwhile, builders are under continuous pressure due to industry-wide problems, including financial crunches and insolvency.

The current state of the construction industry across Sydney and Melbourne

The pricing of materials that skyrocketed in 2022 has evened out in 2023. Prices are still firmly entrenched in an upward trajectory, but the curve has visibly flattened, offering some relief for home builders and renovators.

The cost of building a home in 2023

The most recent data from the Australian Bureau of Statistics (ABS) identifies the cost of constructing a house in February this year as $449,436, marginally up from the previous month’s figure of $445,664. For comparison, in February 2022, this amount was $391,937, whereas it was $319,261 in February 2021.

These numbers are subject to variations based on the type of build. Volume builds, bespoke designs, the property’s size, location and the standard of the finishing touches used will all play significant roles in how much your new home costs.

How construction cost estimators can help with the cost of building a house

If you are a new home builder or renovator, the rising cost of construction labour and materials could be a significant roadblock. Fortunately, building cost estimators offer a way forward.

Building cost estimators keep a close eye on market trends, predict cost trajectories, and use their keen analytical skills to monitor the data to help you make informed decisions about budget and resource challenges.

Building cost estimators will be the first to see and interpret the early signs of price fluctuations, allowing home builders and renovators to be prepared and make timely maneuvers within a turbulent market.

Building cost estimators go beyond just handling figures; they serve as a financial compass that can guide you through a rapidly evolving marketplace. Doing so, they help conceive and implement cost-effective solutions that cater to different construction needs to keep your budget and schedule on track.

Use a construction cost estimator and build faster!

Construction cost estimators like Newin Building Estimating Services remove much of the hassle and uncertainty of new home builds, creating an excellent resource for overcoming the current spate of challenges. By using professional connections in the building industry and drawing on their decades of experience, Newin can help new home builders more accurately estimate building costs and ensure their project remains on schedule. Call today to find out more.

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