It’s no secret that the cost of building has continued to climb since 2020, leaving developers and buyers alike feeling the pressure. Materials, labour and land prices have all increased exponentially in the last five years, creating smaller and smaller margins for builders and developers with less opportunity to profit. An unfortunate flow on effect of this surge in costs is the cutting of corners by builders in order to save money, leading to lower quality builds.
Why are costs continuing to climb?
– Material price increases from global supply chain issues that led to demand surges caused timber, steel and concrete prices to skyrocket.
– A smaller skilled workforce led to labour shortages, so developers are paying more, and builders are finding it harder and harder to find team members, with less experienced carpenters and trades being employed.
– New safety and compliance standards have been introduced in recent years, which has added to the cost of construction.
Where are corners being cut in the building process?
– Unfortunately some developers have used cheaper, lower-grade materials either because that’s what’s available or to avoid lengthy delays in higher quality materials becoming available in a longer timeframe.
– This means the quality of the build is poorer, particularly with trades who are not as skilled.
– In order to deliver a new home on time, attention to detail in fixtures and finishes is reduced, and long-term structural integrity can also often be overlooked in favour of faster build times.
What does this mean for buyers?
– While the immediate effect may be affordable house prices now, homes with poor durability won’t stand the test of time.
– As the years go on, maintenance headaches for owners with constant repairs needed to fix shoddy workmanship can become a major stressor.
– Poorer quality homes will lead to reduced resale value, with potential buyers able to see when build quality is compromised.
A home is a big investment, and building a new home is an especially big commitment as many buyers want to build their ideal forever home. Delivering subpar homes in favour of fast build times and quick sales is a risky endeavour, as cutting corners will rarely save buyers money in the long run. As buyer’s advocates, we can help you find a new home build opportunity that’s worthwhile – with trustworthy developers, and builders who have years of experience and passion for what they do so your new home build is one you can be proud of.
