Shock price rises across the state's building industry are not expected to ease for at least another three months, with an average 10 per cent increase on all materials since last year.
According to national analysis by Master Builders Australia, roofing and aluminium door and window frames have risen 15 per cent, plastic plumping pipes have risen 25 per cent, while interior building materials such as carpets, glass, paint and plaster have risen between 5 to 10 per cent.
Master Builders Tasmania chief executive Matthew Pollock said price increases have followed peaks in construction cycles
He said shortages were now currently affecting internal finishing products, such as plasterboard and floor boards.
"Initially it was reinforcing and trench mesh, then it flowed into timber products, that is largely behind us, now there is a shortage in plaster board and glass, which is causing some price increases. It does seem to be following that peak in new home commencements," Mr Pollock said.
"But we also have seen an easing of product price increases over the last few months. It takes time to ramp up production and time to find new suppliers when you have global supply chain disruptions.
"Producers are starting to catch up, meaning prices are starting to level off."
Mr Pollock said he expected supply material supply chains to have largely caught up to production demands by June this year.
"That means there is probably a little bit of pain still to come, but there is light at the end of the tunnel.
"It's fair to say we are already seeing some relief in terms of price pressure."
Housing Industry Association executive director Stuart Collins said as interest rates rise the number of homes in construction will starts to slow, allowing supply chain efficiency to improve.
"Unfortunately there is no indication that we will be returning to 2020 prices any time soon as demand for housing is likely to remain strong as long as unemployment remains very low."
Post time: Mar-15-2022