Developers expect to build less houses despite rising demand

Developers are expecting to build fewer new houses despite the rising demand from increased migration across Australia. The lack of new houses comes as the cost of building materials has soared post the COVID-19 pandemic. Building items have now risen more than 50 per cent above their 2022 prices. The material cost also adds to rising land taxes and other finances. Labour shortages are also attributing to house-build slowdowns, where developers now believe they will not be able to reach the government’s aim of over 170,000 homes by 2027.