Housing construction costs are already rising, increasing risks of builders going bust

Jason O'Brien/AAP For Australia’s building industry, higher fuel costs since the start of the Middle East war have been just the start of the pain. Countless construction products are made with petroleum-based products. From bitumen for our roads to plastic pipes, prices are rising, with some supplies already facing delays. This shock hits an industry still recovering from COVID, while also trying to meet surging demand for new homes and major infrastructure across Australia. Even before the war, there was fierce competition for tradespeople and materials from big infrastructure projects across Australia. These include the A$3.6 billion Brisbane Olympics stadium, Queensland’s $9 billion Bruce Highway upgrade and Victoria’s $8 billion Big Build for new housing. Meanwhile, governments across Australia have fallen behind on a national target to build 1.2 million new homes by mid-2029 Whether you’re in the market for a new home, or you’re a builder, here’s how the Middle East war could impact your project – and its cost. Price rises and tighter supplies Builders need diesel to run heavy machinery and deliver materials to site. Diesel prices have been rising even faster than petrol since the war disrupted global supply routes. Other price rises affecting building products announced since the Middle East war began include: plastic pipes, up by as much as 36% steel plywood walling and cement. Most of Australia’s bitumen for sealing roads – from new subdivisions to highways – is i...