Construction Material Costs Key to Australia's Housing Affordability ?
Australia's ambitious plan to build 1.2 million new homes over five years will depend not only on increasing housing supply but also on reducing the cost of construction materials.
Industry representatives are warning that rising prices, transport expenses and lengthy approval processes are adding pressure to home-building costs.
Cement, concrete, sand, stone and aggregates are essential for building houses, roads and community infrastructure. However, their contribution to housing affordability is often overlooked.
An average Australian home requires around 110 tonnes of aggregates and more than 50 cubic metres of concrete.
These materials account for an estimated 29 per cent of costs across major infrastructure projects. In housing subdivisions, concrete, asphalt and aggregates make up approximately 38 per cent of project costs.
Prices have also increased significantly. The cost of concrete, cement and sand used in Australian home construction is now around 36 per cent higher than before the COVID-19 pandemic.
Road freight costs are adding to the pressure. Australian road transport prices rose by a record 17.6 per cent in the year to June 2026, making it more expensive to deliver materials to construction sites.
The cost increases are flowing through the building industry and ultimately affecting the price of new homes.
Under the National Housing Accord, Australia aims to deliver 1.2 million homes by June 2029. Victoria has a separate target of 800,000 homes over 10 years, while Queensland aims to build one million homes by 2044. New South Wales is targeting 377,000 homes by 2029.
However, the National Housing Supply and Affordability Council's 2026 assessment forecasts around 980,000 homes during the five-year Accord period. This would leave the country approximately 220,000 homes short of its target.
Industry representatives say meeting these targets will require improvements in planning, land availability, workforce capacity and construction productivity. A reliable supply of affordable building materials will also be essential.
The location of quarries and concrete production facilities is particularly important because these materials are expensive and difficult to transport over long distances.
When quarries and concrete plants are located far from growing communities, transport costs increase. Delays in approving new quarries or expanding existing operations can also threaten future supply.
Industry leaders are calling for several policy changes to reduce these pressures. These include protecting important quarry sites and concrete plants, speeding up approval processes, improving heavy vehicle access and reviewing unnecessary freight restrictions.
They are also urging governments to keep industry fees and regulatory costs reasonable while encouraging innovation and the use of lower-carbon construction materials.
The industry says these changes can be achieved without weakening environmental standards or community protections.
Australia's cement, concrete and aggregates sector contributes $20.7 billion to the national economy and supports almost 113,000 jobs.
Beyond its economic contribution, the industry supplies essential materials for housing developments, roads, schools, hospitals and other infrastructure.
Industry representatives argue that reducing avoidable costs across the construction materials supply chain should be part of Australia's broader housing affordability strategy.
They say increasing housing targets alone will not solve the crisis unless the country can also build homes more efficiently and at a lower cost.
More updates to come on AusNewsLanka.
Source : Press Released.
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