Huge tradie salaries fuel housing crisis – but could fix the skills shortage
Gold-plated tradie salaries are creating issues for the housing sector, but experts say their huge pay cheques could also convince more people to enter the industry.
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Whopping tradie salaries are driving up costs and fuelling the housing crisis, with more than half a million construction workers needed nationally in the next five years.
But the skyrocketing price of skilled labour could also be the answer to solving the skills shortage, as more and more people choose to study vocational courses.
Master Builders Australia chief executive Denita Wawn said hourly wages for skilled trades people had increased by 26 per cent in the past decade, contributing to a 44 per cent increase in the cost of building a house since the pandemic.
“Labour shortages are currently the biggest source of pressure in construction,” she said.
“More than half a million new workers are needed in the building and construction industry over the next five years.”
She encouraged more people to take up a trade.
“Qualified tradespeople are earning significant sums of money, well in excess of $130,000 — $140,000 a year. You hear of some tradies who are earning in excess of $200,000.”
Master Builders SA chief Will Frogley said having enough skilled labour was “crucial to ensuring high quality building work is completed on time and on budget”.
“South Australia’s low unemployment rate is positive news, but it does reveal the significant challenge for the building and construction industry to fill job vacancies,” he said.
“The upside to this challenge is there’s never been a better time to get your foot in the door of the building industry.
“We continue to be inundated with demand from employers for more apprentices.”
According to recently released figures from the National Centre for Vocational Education and Research (NCVER), South Australians are increasingly choosing to study vocational courses in priority areas.
Data showed government-funded enrolments in vocational education had increased by more than 7.2 per cent since 2022.
That included 6.6 per cent increase in architecture and building enrolments.
Training and Skills Minister Blair Boyer said it was extremely important get young South Australians into skilled work, like construction.
“Not every young person needs to go to university — they can have extremely rewarding and fulfilling careers without the burden of a HECS debt,” he told The Advertiser.
“They can get started on the tools straight away.
“There’s never been more opportunities for young people in the state.”
My Boyer said there had been a record investment into the skills and training sector as part of the national skills agreement.
“$1.4 billion, in addition to $850 million from the Commonwealth that will support more than 150,000 new training places in in-demand areas,” he said.
“We’ve also invested in five brand new technical colleges so students can get the skills they need while getting their SACE certificate and be ready to walk straight into a job.”
Meanwhile, The Block auctioneer Tom Panos sparked debate on Instagram over housing costs with a post claiming a brick layer was charging $1000 a day for his work.
“Let’s be clear, it’s not a housing problem we’ve got, it’s a construction problem,” he said.
“When you take into account the rising cost of labour, materials, finance and land you end up with developers who cannot afford to start building.”
The skyrocketing price of skilled labour comes on the back of new research showing land prices in Adelaide have resumed their upward climb.
In the December quarter, the median residential land price in Greater Adelaide rose 8 per cent, to nearly $300,000.
On an annual basis, prices rose 15.69 per cent, or $40,000.
Earlier this month, the HIA released figures that showed red tape costs on a new house and land package in Adelaide had also increased – up 90 per cent, or by $112,000 – since 2019.
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Originally published as Huge tradie salaries fuel housing crisis – but could fix the skills shortage
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