Building costs going through the roof

1 July 2022
Life is difficult at the moment for builders and their customers in New Zealand.

Building products are scarce as hen’s teeth, and if you do find what you want, the price has gone through the roof. It’s almost enough to make you want to up sticks and cross the Tasman. Here are some numbers to illustrate the damage.

21. The average cost of building a standard three-bedroom home in a New Zealand city has risen 21% in the past year, according to QV CostBuilder. Earlier this month the construction cost database provider released its latest pricing update, for the end of April, and warned that prices would keep rising. Between April and the end of 2021, the average cost of reinforcing steel jumped 29%, metalwork was up by 18%, external works were up 11%, and piling and excavation costs were up 11%.

15. Placemakers is planning a 15% increase in the price of framing timber next month, according to a price list seen by Stuff. The price of bagged concrete is set to rise 10%, steel reinforcing will go up 8%, and glass wool insulation prices will rise between 7.5% and 10%. And that’s just July’s scheduled increases – in August, MDF prices will rise 6%, and wet wall linings will go up 7.5%. But wait, there’s more – in September, you can kiss cheaper longrun roofing goodbye as the price increases 10%.

18. Looming price rises build on already steep increases last year. Stats NZ said the price of plywood sheets went up 18% over 2021. At the same time, the price of some tools jumped 43%. Supply chain issues and staffing shortages, partly due to Covid-19 and other illness, continue to cause havoc.

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Source: Stuff