The pressures experienced nationally in the home building industry

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Widely reported by the media over the last 18 months the housing industry has been affected by a series of events arising from COVID-19 that have placed unprecedented disruptions to global supply chains and materials manufacturing.

In addition, the high demand has made trade availability a significant challenge. Jointly these issues have resulted in longer building durations and rapidly increasing costs.

The Housing Industry Association, the peak body representing builders across the country, notes in their latest press release that:


“Home builders had expected, and hoped, to see an improvement in these ongoing pressures in early 2022, but the flooding in northern NSW and Queensland, combined with the Ukraine/Russia conflict, means that the existing pressure on labour supply and delays in materials availability will now stretch well into 2022. These combined pressures are leading to further cost increases in new home building prices." - Housing Industry Association

Learn more about the pressures in the home building industry in 2022 released by HIA in the button below.

What are the continued pressures in the home building industry experienced nationally?

  • Restrictions placed on the construction sector due to Covid regulations in 2020 and 2021 has stretched out the national pipeline of work and made trade access increasingly difficult
  • Global demand on building materials is now at the highest in history
  • Increased shipping costs and delivery delays of imported materials and products;
  • These pressures were compounded by the extended lockdowns across most states and countries
  • Repair and replacement work from hailstorms, bushfires and the recent floods. These events have also seen factories and building material stocks dry up.
  • Trade embargo and tariffs placed on Russian goods in particular steel, iron, nickel, chemical and wood materials, account for up to 2/3 of raw material used in manufacturing have impacted supply delays and will cause length delays
  • Delays created by the land development sector struggling to keep up with demand, and where off-plan land purchases in major developments require a 12-month wait for settlement before building works can commence

Learn more about the pressures in the home building industry in 2022 released by HIA in the button below.

"Builders understand that the pressure being placed on customers to wait longer for work to start or finish, and to manage increasing prices for labour and materials, is not a welcome situation. Getting a home built on time and on budget is a priority for everyone – builders, customers, banks and insurers.” - Housing Industry Association

How does this affect your home?

Despite the demand of building across every state and territory, Rivergum Homes continues to hold a very strong position in the market with our valuable trade partners and suppliers that we continually work closely with to cause minimal customer disruption where possible.

To adjust to the challenges experienced in the industry, the Rivergum Group have grown head office and site management teams to cope with the challenges presented to us and assure our valued customers of our motivation to deliver quality homes as quickly as possible.

While we continue to appreciate the pressures each and every valued customer is experiencing in undesirable delays and disruptions, the Rivergum team are working tirelessly to deliver minimal customer disruption where absolutely possible.

Despite these efforts, delays must be anticipated.

If you are currently building with Rivergum Homes as your homebuilder in Adelaide or looking at the options of building,  we suggest to all of our customers that you can also play an important role by ensuring tasks required of you in your Agreement are completed on time, such as the demolition of an existing home, preconstruction works you are organising, or ensuring your finance remains valid and has capacity for unexpected price changes.

Whether it is the sale of your current home, concluding a rental agreement, or timing an intra or interstate relocation, extra caution must be used to avoid the frustration of a delayed hand-over of your home.

Speak to your dedicated New Home Consultant or Customer Care representative who can discuss any questions or queries you may have you are welcome to enquire with us via the enquiry form below.

Learn more about the pressures in the home building industry in 2022 released by HIA in the button below.

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