Building a new home in Australia now takes significantly longer than it did just a decade ago. According to new data released by the Institute of Public Affairs (IPA), the average home build time has increased by over 50%, rising from 8.5 months in 2014 to 12.7 months in 2024.
This delay is not just a matter of scheduling. A complex mix of issues is driving the extended timelines, including a severe shortage of skilled trades, disruptions to the supply chain, rising material costs, and regulatory inefficiencies across various states and territories. The IPA also reports that construction material prices have soared by 53% over the same period, putting further pressure on builders and homeowners alike.
Western Australia and South Australia are experiencing the longest delays, with some home builds extending well beyond 14 months. Labour shortages in particular are hitting regional and remote areas the hardest, where access to skilled trades is already limited.
These extended timelines are having a flow-on effect across the housing market. Project delays are pushing out settlement dates, adding holding costs, and impacting buyer confidence. Builders are also under increasing financial stress as they manage rising costs against previously contracted prices.
Industry experts are calling for coordinated policy efforts to address the backlog. Suggestions include streamlining building approvals, investing in trade training and apprenticeships, and reducing unnecessary regulatory burdens. With demand for new homes remaining high, especially in growth corridors, reducing build times will be essential to keeping Australia’s housing pipeline moving.