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Demand for renos down, new data shows

Demand for renos down, new data shows

house approvals have risen
by Sasha Karen 0 comments

New ABS data shows that private sector house approvals have risen in the last year but dwellings (excluding houses) have dropped. According to one tradie website, these movements are having a knock-on effect on hourly rates for tradies.

Tradies, according to ServiceSeeking.com.au, have experienced a 4 per cent rise in hourly rates over the last year (but over the quarter have only seen a rise of 1 per cent) and building approvals have fallen over the last two months.

These factors have ServiceSeeking.com.au’s CEO, Jeremy Levitt, saying that demand for tradies is cooling and, as a result, has seen a decline in hourly rates.

“Compared to the quarterly change in hourly rates at the same time last year, we can see that demand for tradies is falling off,” Mr Levitt said.

“There is a cooling in renovation activity and a softening in tradies prices. Last year alone saw New South Wales experience a 9 per cent hike in hourly rates, and a 5 per cent rise across Australia. This year shows a different story.”

The following data is based on a sample of 52,000 quotes on the platform of eight popular tradies identified by ServiceSeeking.com.au:

Trade Average hourly rate Quarterly change Yearly change
Builders $67.85 7% 8%
Carpenters $61.30 1% 11%
Electricians $77.60 2% 3%
Landscapers $54.15 <1% -13%
Painters $44.40 -1% 4%
Plasters $48.60 -6% -1%
Plumbers $85.60 <1% 4%
Tilers $55.85 7% 21%
All trades average $61.80 <1% 4%
Demand for renos down, new data shows
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