Building more energy-efficient homes is affecting building activity and housing affordability.
Building more energy-efficient homes is affecting building activity and housing affordability. john mccutcheon

Rising costs are hurting builders

A REPORT released by Master Builders shows the rising cost of building a new home is adversely affecting building activity and housing affordability.

Investors and home buyers are opting for existing housing. Ausmar Homes director Tim Hendy agreed that costs were rising but said a lot of them were due to environmental regulations, such as compulsory water tanks.

"People are certainly getting value for money - they're getting more home. But it costs more to build that," Mr Hendy said.

"It's things like water tanks. There's the obvious costs associated with them, not only supplying but plumbing and installing."

Mr Hendy said other sustainable elements contributed to higher building costs.

"To make homes more energy efficient you need better insulation and different building practices.

"It's definitely going to save people in the long run but it does cost more up front."

Mr Hendy said actual building materials had not increased in price, but building more energy-efficient homes used more of the materials.

"It's generally getting dearer but the house is going to be more liveable," he said.


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