- No products in the cart.
25 March 2026
The cost of a new home was up by 3.7 per cent over the year to February 2026, the fastest annual increase since October 2024, according to today’s ABS inflation results.
The figures confirm that new home building costs were already accelerating before the outbreak of conflict in the Middle East, developments which are likely to amplify building cost pressures even further.
Master Builders Australia Chief Economist Shane Garrett reiterated that housing continues to make the biggest contribution to inflation across Australia.
“During February 2026, new home building costs surged to a 16-month high while rents have grown by 3.8 per cent over the past year.
“Material cost increases in the past fortnight could push the cost of all building even higher including residential and non-residential, with further shortages of vital products including plastics expected.
“Surging diesel prices and the disruptions to the building material supply chain are impeding builders, suppliers, manufacturers and subcontractors. Over the past four weeks, moving building materials and workers around has become much more expensive,” said Mr Garrett.
Master Builders Australia CEO Denita Wawn said the instability and its potential impact on inflation and builders’ livelihoods has reaffirmed the need to get the federal budget right.
“As we have outlined in our Pre- Budget Submission, red tape reduction, investment and apprenticeship incentives and increased infrastructure spending are all needed if we are to meet the National Housing Accord target and improve affordability.
“In response to the current economic uncertainty, builders need flexibility from government and private sector clients around completions dates and, where possible, contracts need to facilitate the sharing of the impact caused by unexpected cost increases outside the builder’s control.
“Builders need our backing and with building and construction, particularly the civil sector, being a major user of fuel and diesel, it must be a priority for decision makers in terms of ensuring supply.
“If home and infrastructure building stalls, we risk falling even further behind on the pipeline of works before us.
“Now is the time for measures that increase housing supply, and the federal budget must deliver,” said Ms Wawn.
Media contact: Dylan Hafey, Media Advisor
0497 330 064 | dylan.hafey@masterbuilders.com.au