[ad_1]
“In short, we have passed the cycle. There is still a labor shortage, but it is not as bad as it was a few years ago.”
Prices of some goods are still rising. Prices in the ceramic products category rose 4.5% through June. This includes products such as clay tiles, which saw a 9.8% increase in prices. Meanwhile, prices of other materials rose 5%, including products such as paints and other coatings (up 9.1%).
“The prices of all energy-using products continue to rise, including brick and tile,” Reardon said. “We are seeing copper prices rise because of regulatory changes. We are moving to lead-free copper.”
Reardon said relatively stable construction material prices have injected vitality into the industry.
“We’ve seen the time it takes to build a house drop from about 18 months to pre-pandemic levels, which has given builders the confidence to compete on price again, so we’re going to see a very price-competitive market in 2024,” he said.
loading
Simonds Homes chief executive David McKeown said volume builders were offering discounts on house and land packages, with prices no longer rising by thousands of dollars a week.
“The reduction in input costs … means we have been able to maintain prices,” he said. “On the other hand, builders are now more competitive for work.”
PRD chief economist Dr Diaswati Mardiasmo said stable prices were good for the construction sector.
“It’s better in the sense that it’s still expensive but it’s not doubled and the shock is no longer there,” he said. “They just knew brick and steel were going to be more expensive … Now it’s just expected.”
There is also more certainty for consumers: whether they can get a loan to build or renovate a home, Madiasmo said.
“It’s a little bit of both because now people understand the costs better, they can budget better, but at the same time it’s still a cost constraint … if you need a loan it affects the amount of money you need to get from the bank.”
McKeon said a severe shortage of workers in traditional industries was also weighing on the sector and would continue for the foreseeable future.
“Labor costs … were a big issue for us late in the pandemic and they continue to be an issue now,” he said. “We still haven’t solved the skilled labor problem in this industry. So we really need to address that nationally because it’s still going to continue to constrain us and other industries.”
loading
In some cases, Reardon said, clients aren’t getting as much in return as they expected.
“In times of inflation, you have deflation, and we’re seeing that in the construction industry.
“We’re seeing bathrooms getting smaller and kitchens getting lower in size and finish.”
Homeowners had begun renovating kitchens early in their move-in period, with a trend toward larger kitchens during the pandemic, but that trend has since reversed, Reardon said.
[ad_2]
Source link
