We've been tracking every invoice across our builds since 2011, and the last five years have rewritten the cost equation completely. Material costs have jumped 40-60% whilst skilled labour has increased 25-35% — but the story behind these numbers matters more than the percentages.

What's Hit Materials Hardest

Steel reinforcement bars have been brutal. We're paying nearly double what we paid in 2019 for the same Grade 60 rebar. Ready-mix concrete is up about 45%, but the real killer has been availability — we've had pours delayed three weeks because the plant couldn't guarantee supply.

Structural steel for our metal fabrication work tells a similar story. The H-beams and hollow sections we use for warehouse extensions and carport structures cost 50-65% more than pre-2020. We've had to redesign some builds to use lighter sections where structurally acceptable just to keep budgets realistic.

Electrical materials caught us off-guard. Cable prices doubled, switchboards are 60% more expensive, and don't get us started on solar panel costs — though those have started stabilising in 2024.

Where Labour Costs Have Actually Shifted

The skilled trades have become expensive and scarce. Our electrical subcontractors are charging 30-40% more per point than they did five years ago, and they're booked months out. Good welders for structural work are commanding premium rates — we're talking 35% increases for the experienced hands who can work to AWS D1.1 standards.

Interestingly, general construction labour hasn't increased as dramatically. Basic concrete work and general building labour is up maybe 20-25%. It's the specialised skills that command the premium now.

What's changed more than pure rates is availability. We used to have three qualified crane operators we could call for beam installations. Now we book crane work six weeks ahead because there simply aren't enough certified operators.

How This Changes Project Planning

We quote materials with 30-60 day price holds now instead of the 90-day holds we used to offer. Materials procurement happens earlier in the build sequence — we're ordering structural steel during the design phase rather than waiting for foundation completion.

Labour scheduling has become more critical. We book our electrical team during the initial contract phase, not when we're ready for first-fix wiring. Same with specialised welding work — if you need certified structural welding, that gets locked in early.

The old approach of making material selections during construction doesn't work anymore. When structural steel takes 8-12 weeks to deliver instead of the 3-4 weeks it used to take, every decision has to happen upfront.

What Stays Affordable, What Doesn't

Basic materials like sand, aggregate, and standard cement haven't moved as dramatically — maybe 25-30% over five years. But anything involving steel, copper, or complex manufacturing has been hit hard.

Standard finishes for renovation work haven't moved as much, which is why our sister company Larry Contractors isn't seeing the same cost pressures we face on structural builds. It's really the heavy building materials that have been hammered.

Solar installations present an interesting case. Panel costs spiked in 2021-2022 but have come down significantly in 2024. However, the electrical installation costs remain high due to labour shortages.

The Real Impact on Build Budgets

A typical landed reconstruction that might have cost $800,000 in 2019 is pushing $1.1-1.2 million today for the same scope. That's not just inflation — it's a fundamental shift in the cost structure.

Material costs now represent 60-65% of total build cost versus the 50-55% we used to see. Labour, whilst more expensive per hour, makes up a smaller percentage of the total because materials have inflated faster.

The impact varies by project type. A simple A&A addition sees less impact than a full structural rebuild. Piling costs have been relatively stable because the materials (concrete and steel) represent a smaller percentage of the total piling cost compared to equipment and labour.

How long have material costs been this high?

We started seeing significant increases in mid-2020, but the real shock came in 2021-2022. Costs have stabilised at these higher levels rather than continuing to climb, though we're not seeing any meaningful decreases.

Are labour shortages getting worse?

For skilled trades, yes. We're competing with major infrastructure projects and commercial developments for the same pool of qualified electricians, welders, and crane operators. The pipeline of new skilled workers hasn't kept pace with demand.

Should we delay our build hoping costs come down?

We don't see material costs returning to 2019 levels. The new baseline appears permanent. What's more likely to improve is availability and lead times as supply chains adapt. Delaying usually means dealing with the same costs plus whatever increases happen during the delay.

Every build is different, and these cost shifts affect projects differently depending on scope and complexity. We're still seeing clients move forward with builds — they're just budgeting more realistically upfront. If you're planning a landed project, let's discuss how current costs might affect your specific build. WhatsApp us and we'll walk through the numbers honestly.