A current timber shortage is affecting Australian home builders. The Australian Forest Products Association warns that by 2035 there will be 250,000 house frames short of demand.
Why has this happened?
After the announcement of Federal Government incentives for home builders, timber supplies have come under significant stress. The shortfall in supply to meet the surge in demand has resulted in massive price inflation for timber products. This has forced builders to look for other, more expensive options such as steel or masonry. These price increases are then passed on to home builders and renovators.
The unfortunate consequence of this has forced many builders to make difficult decisions: close their business as budget blow outs bite, continue to work despite worsening delays or pass those costs on to customers, many of whom become disgruntled as a result.
Local builders are trying to source Australian timber instead of overseas options which appear to be facing similar shortages, however, Australian supplies have been gravely affected by bush fires.
What does this mean for the building industry in 2022?
The Government is expecting the building industry to be a key player in its economic recovery, after two years of lockdowns and pandemic stress. However, limited supply of essential materials poses challenges for the sector in 2022, as demand for new houses soars across the state and nation. Let's watch this space to see what eventuates in 2022.
As we launch into 2022, now is the time to put your hand up if you plan to buy or sell real estate and need an expert to help. Drop us a line if you'd like to discuss your own real estate needs. We're here to help.