A SURVEY of building industry conditions has shown labour costs, financial roadblocks and a lack of demand are the main constraints builders in the region faced in recent times.

The Master Builders survey showed builders in Central Queensland found labour costs were the greatest restraint in the September quarter at 65%.

Master Builders CQ Regional Manager Dennis Bryant said these contributing factors had made the regional building industry tough.

"Contractors at the mines have reported they do have work but the commercial and residential builders have reported things are very tight and they are only surviving on renovation jobs," he said.

"The survey has indicated that labour costs are a greater restraint in the regional centres compared to state so it's a bigger problem in CQ than it is state wide."

Availability of finance is another problem because people are finding it difficult to secure bank finances.

"We're finding lack of demand in CQ is a big challenge, when the mining industry suffered, that struck the construction side too as people lost confidence in building homes due to future employment prospects so it all comes down to confidence. We are down about 49% compared to the 12 months prior which is pretty hard to take.