Australians set to spend $34bn in unprecedented tradie jobs boom

Australia is set for an unprecedented home reno jobs boom as people prepare to pump $34bn into their properties despite construction costs soaring.

Surging demand for home renovations and an increase in remote working is fuelling an unprecedented tradie jobs boom across Australia.

Hipages is forecasting $34bn worth of tradie jobs will be up for grabs in the next six months as families pump money they would normally spend on travel and entertainment into their homes.

The online services directories company, which is part owned by News Corp, publisher of The Australian, says 39 per cent of Australians saved more in lockdown, on average an extra $800 per month per household, and 64 per cent plan to put these savings towards work on their home.

Hipages non-executive chair Chris Knoblanche said at the company’s AGM on Thursday, the current demand for tradies in Australia was unprecedented due to a number of factors changing the way people live and work.

“We have seen the continuation of Australia’s burgeoning home improvement market, which unprecedented levels of activity underpinned by long-term low interest rates, rising home vales and strong household liquidity,” he said.

“We continued to spend more time at home than we did before, and as property values continue to rise to record levels, discretionary spending on the home has increased in step.”

Former iSelect chairman turned Hipages non-executive chair Chris Knoblanche said the demand for tradespeople was unprecedented. Picture: Stuart McEvoy

Hipages has seen a strong bounce back in platform activity since the end of lengthily lockdowns in NSW and Victoria, with demand now outstripping the supply of tradespeople.

The increased demand in home renovations and new builds — and major materials shortages due to supply chain issues — has lead to the steepest jump in construction costs in almost two decades.

Those costs rose 3.8 per cent in the three months to September, according to the Cordell index – the most comprehensive survey of labour, material and subcontractor expenses – substantially faster than the overall inflation rate.

CoreLogic research director Tim Lawless said the surge in dwelling approvals, which peaked in March, was now progressing through to construction, causing wide spread demand for materials and trades.

“For anyone who is looking to build or to renovate, or for someone who owns a business involved in the residential construction industry, it means they are all likely to be facing significantly higher costs,” Mr Lawless said.

In September, Hipages reported a 128 per cent jump in NPAT (net profit after tax) to $1.2 million in its first year on the ASX. The company also saw a 12 per cent growth in the number of tradespeople subscribed to its service and the volume of jobs on its platform was also 12 per cent higher at 1.53m.