Construction Industry: 2023 Forecast

We haven't got a crystal ball for what will happen in the next 12 to 18 months, but from what we are seeing, the market is stabilising, and there is more confidence in building homes. Here are our predictions for the Australian construction industry in 2023.

1. Building approvals decreasing

The building approvals are going down due to how the industry was affected in 2022, so fewer projects will be in the pipeline over the next six to 12 months. But a lot is still happening, with many projects either kicking off, underway or nearing completion.

2. Prices stabilising

We expect prices to stabilise and reduce the pace. It is happening already. The monthly emails from suppliers alerting 15-20% price hikes have slowed down and are now in single digits, which is good news. There's more confidence in builders pricing things as the market stabilises.

3. Supply chains opening-up

Several sawmills and the stock affected by fires are reopening and catching up on their production. Forestry was impacted by this too, which took a real hit on our lumber supply. We also import many materials from overseas, like the OSB board, and those factories are opening back up and catching up to demand. These materials with a four-month lead time are now down to six to eight weeks.

4. Labour availability improving 

The market is stabilising, and in our experience, labour availability is improving. There are still delays with specific trades, but as long as everybody's organised and a bit patient, everyone will come to the party. 

5. Good time to start planning 

If you’re considering starting a new build, lock in the quotes before the interest rates increase further and choose your builder before they start getting busy again. But also, if you're looking to build and you haven't got plans, we would recommend to start doing plans now and get everything in line because before you know it, it will be six months down the track after you design, and you'll be ready to start construction. And the flow-on effects we've seen in material or labour shortages won’t be such an issue. Planning, following the process correctly and following what your builder and designer say reduces the stress and pressure of the whole experience.

Bluebird Design + Build are Brisbane’s luxury custom home design and build specialists who work with you every step to design and build a home that looks excellent, matches your budget and meets your family's needs. Find out more about our team here or book a discovery call to see how we can help.