Cost of building a home increases

The Housing Industry Association (HIA) says that rising commodity prices have added an additional $1,678 to the cost of building a home.

The rise in steel prices in particular, have impacted on house building prices. Steel prices have risen more than 60% since January 2008. In August 2008, steel used for concrete structures went up $200 per tonne. The HIA says that labour prices and competition for workers is also intensifying. Labour and materials costs are adding about 5% per year to the cost of new homes.