UPDATE: Severe shortages of bricklayers and other skilled tradespeople have emerged across regional Australia as demand surges in major cities. The latest data from the Housing Industry Association (HIA) reveals a stark contrast between urban and rural areas, with regional Queensland facing a critical shortage with an index score of -0.92 compared to Brisbane’s -0.48.
As demand for construction continues to escalate, cities are drawing skilled trades away from the regions, leading to alarming disparities. Tom Devitt, senior economist at HIA, stated, “When housing and construction demand in cities far exceeds that of regions, tradies go to the cities and the regions are left behind.”
This trend is especially pronounced in Victoria and New South Wales, where regional areas lag significantly behind their urban counterparts. For instance, regional Victoria’s score stands at -0.46 while regional NSW is at -0.49, both trailing their respective capitals, Melbourne and Sydney.
The data showcases that bricklaying remains in the most acute shortage with a score of -1.09, followed closely by ceramic tiling at -0.86, carpentry at -0.74, and roofing at -0.66. The HIA Index, calculated from a survey of builders and tradespeople, indicates that the demand for skilled trades will only intensify as home building ramps up across the country.
The impact of these shortages is far-reaching, affecting not just construction timelines but also the prices of trades. The cost of site preparation work, including demolition and land clearing, has surged by 8.4% over the past year, further straining budgets for construction projects.
Authorities warn that without attracting more skilled workers from overseas and enhancing the capacity of the existing workforce, the situation is only expected to worsen. Devitt emphasized the urgent need for action, stating, “The softening in trades price inflation may also be short-lived as a result, with trades prices having already increased by double the broader rate of wage growth across the Australian economy since 2019.”
This urgent crisis in trade availability is affecting not just construction timelines but also the affordability of housing in regions that are already grappling with high rental prices. As the demand for skilled labor continues to rise, the pressure mounts on local economies, making it crucial for policymakers to address these shortages immediately.
As the situation develops, industry experts and local governments must work together to find solutions that will not only retain skilled tradespeople in regional areas but also attract new talent to ensure that the construction industry can meet the growing demand. Stay tuned for further updates on this critical issue impacting the Australian housing market.
