Master Builders Victoria president: ‘If you have only five or six things go wrong you’re doing well’

People building new homes in Victoria are being warned to factor in a financial buffer for potential price rises.

Builders are coping with unprecedented demand for new homes, skyrocketing prices for labour and unforeseen material shortages.

Master Builders Victoria president Mark Little said the HomeBuilder stimulus program began a massive wave of demand for new homes around the country, and the industry was now dealing with shortages that could never have been predicted.

Until recently, as much as 60 per cent of laminated veneer lumber used in Australia came from war-torn Ukraine, and shipping costs from China have soared amid a wave of Covid cases there.

“It’s a really, really challenging environment,” Mr Little said.

Mark Little says builders are coping with unprecedented demand. Picture: Mark Wilson

“It’s still a good time to build, you just need to be aware of the challenges … if you have only five or six things go wrong you’re doing well.

“One week there might be roof tiles but no roof tilers.”

He said people building a new home needed to understand “everyone is under the pump”.

He said when specific shortages hit, some clients were willing to “get their wallets out” to pay for scarce supplies or labour and keep their project on time.

Mr Little‘s comments were echoed by Hermitage Homes and Kingsbridge Homes chief executive John Goris, who said price rises in the residential construction sector were a simple case of “supply and demand”.

Mr Goris, whose companies build 500 homes a year, said established builders often had longstanding relationships with suppliers and tradespeople which could help get homes built sooner.

Mr Goris said there were still long lines of customers wanting to build new homes, and said builders and customers alike needed to factor in a financial buffer for potential price rises.

“Everyone in the industry is working harder than ever before,” he said.