New research from the Centre for Future Work challenges the government’s claim that construction labour costs have pushed up Australian housing prices. Prime Minister Turnbull blamed construction workers and their union for the high cost of housing when he re-introduced the ABCC bill.
Key findings:
- Construction wages have grown more slowly than the Australian average over the last five years
- Construction labour accounts for only 17–22% of the total costs of new building
- Construction costs account for less than half the market value of residential property
- Construction labour corresponds to less than 10% of housing prices
- A construction worker now needs 9.2 years of pre-tax earnings to purchase a median home — up 25% from just four years ago
“The government’s claim that construction labour costs explain the rising price of housing has no basis in evidence,” said Jim Stanford, Director of the Centre for Future Work.
Related research
Beyond Belief: Construction Labour and the Cost of Housing in Australia