Materials to rebuild homes after disaster rise by 70 per cent in five years, report finds
According to a report released by the Insurance Council of Australia, the cost to build a home in Australia has risen almost 30 per cent in five years.
Construction material costs in Australia have surged by around 70 percent over the past five years, according to a report by the Insurance Council of Australia. This price hike is especially pronounced in Queensland and northern regions, where the cost to build a home has increased by 44 percent since 2021. Insurers processed 400,000 claims for home repairs and rebuilding between 2022 and 2026, amounting to $11.3 billion in costs.
Roof tiles alone saw a price increase of over 70 percent, three times the rate of inflation, while windows, plasterboard and concrete prices rose by more than 37 percent. Insurance Council Australia CEO Andrew Hall attributes the price surge to inflation, noting that insurers are passing on these increased costs to customers. In Queensland, severe storms often cause immediate damage, making replacement materials the most expensive items in the insurance premium calculation.
Despite increased building, Australia is repairing nearly as many homes as it is constructing new ones. In 2025, 145,392 homes were declared damaged, while 172,657 new homes were built. Queensland has seen over 240,000 homes repaired or replaced in the last five years. This places a dual strain on the market, with insurers competing with builders for limited resources.
The report calls for building more resilient homes and ceasing development in high-risk areas. Experts recommend retrofitting existing homes to withstand severe weather, rather than continually rebuilding like for like. This approach would alleviate pressure on material and labor resources that could otherwise be used for new construction.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
