Which building materials have increased the most?
This is one of the most important aspects of the Australian construction-cost story.
Timber
Timber was one of the biggest price shocks during 2021–2022. The ABS reported annual increases in timber, board and joinery of:
- 20.6% in March 2022
- 21.2% in September 2022.
The important factors to increase the price of timber was global timber shortage, COVID-related production disruption, housing demand, freight costs, supply-chain disruption. Timber prices subsequently stabilised considerably.
Steel
The steel prices increased substantially during the pandemic period because of iron ore and energy costs, international demand, manufacturing disruption, shipping costs and construction demand. Steel remains important because it affects structural steel, reinforcing steel, roofing, frames, beams, fixings, appliances and electrical infrastructure.
Aluminium
Aluminium has become increasingly important in 2025–26. The major affected products include aluminium windows, doors, frames and roofing products. In June 2026, the price of aluminium windows and doors increased 3.2% in the quarter.
Copper
Copper is now one of the important sources of construction-cost pressure. The price increase of copper affects electrical cable, wiring, conduit, plumbing and electrical equipment. In June 2026, electrical equipment prices increased 7.4%, while electric cable and conduit increased 11.2%.
PVC
PVC is used extensively in pipes, electrical conduit, drainage, plumbing and other building products. Higher oil and petrochemical costs can therefore flow through into construction.
Concrete, cement and sand
These materials have experienced continuing cost pressure because production is energy intensive. The ABS reported that the price of concrete, cement and sand were affected by raw-material costs, labour, energy, freight, maintenance and environmental compliance costs. Concrete is particularly important because the price increase of concrete affects almost every major construction project.
Plasterboard/plaster products
The price of plaster products has also increased. In June 2026 the price of plaster products by +4.6% quarterly. In Brisbane, plaster products increased 7.7% during the quarter and in Hobart, 9.3%.
Roof tiles
Roofing products have been particularly affected by extreme weather and rebuilding demand. Recent Cotality/Cordell analysis found that roof-tile costs increased approximately 77% over five years to March 2026. This is an exceptionally large increase compared with general inflation.
Windows
The costs of windows have been affected by increases in the price of aluminium, glass, transport and labour. The combination of aluminium and glass costs has made windows significantly more expensive.
Other materials
The increased prices of other materials are also experiencing pressure. Other construction materials include bricks, pavers, insulation, cement products, glass, tiles, flooring, carpet, paints and coatings, electrical equipment, plumbing products, PVC products, structural steel and reinforcing steel.
Some of the largest five-year material increases
The latest Cotality/Cordell analysis is particularly revealing. Between approximately 2021 and early 2026, the price of some materials and construction components increased by approximately:
| Material/component | Approx. five-year increase |
| Roof tiles | 77% |
| Windows | ~37–48% range |
| Plaster | ~37–48% range |
| Plywood | ~37–48% range |
| Copper piping | ~37–48% range |
| Structural steel | ~37–48% range |
| Cement | ~37–48% range |
| Concrete | ~37–48% range |
The Insurance Council/Cordell analysis says several of these materials increased more than twice the rate of general CPI. This demonstrates why simply looking at Australia’s headline, CPI can substantially underestimate the cost pressures experienced by builders.
The most important material pressures now include roof tiles, aluminium, copper, electrical cable, PVC, plaster, concrete, cement, steel, windows, plywood and other metal products, while skilled labour shortages, energy, freight, extreme weather and insurance are increasingly important drivers.
Labour is now perhaps more important than materials
One of the biggest changes from the 2021–22 period is that labour has become a major structural constraint. Australia has shortages of bricklayers, carpenters, concreters, electricians, plumbers, engineers, project managers and specialised trades. The ABS specifically identifies shortages of bricklayers, carpenters and concreters as continuing to put pressure on residential construction costs.
For commercial and infrastructure projects, competition for skilled labour is particularly intense because of hospitals, schools, defence, transport infrastructure, renewable energy, mining and major civil projects. This creates a labour bidding war between industries.