Hesitating about hitting go on your construction project? The time to build is now, with construction costs set to climb once again. With major suppliers increasing prices for key construction materials, industry giant Generation Homes has warned that rising costs for cladding, insulation, plasterboard, and flooring—some jumping by as much as 7%—could push the price of a typical new-build home up by $20,000 to $30,000. Among the well-known brands affected, Pink Batts insulation has risen by 4%, while James Hardie cladding and GIB plasterboard have also seen hikes.
Building suppliers point to economic pressures as the driver of price increases. Fletcher Building, which owns both Pink Batts and GIB, cited inflation and rising electricity costs as key reasons for the price hikes. Additionally, a weaker New Zealand dollar has made importing raw materials more expensive.
Implications for Commercial Construction
These cost increases don’t just impact residential builds—they also present challenges for commercial construction projects. Rising material costs can strain already tight budgets, particularly for large-scale developments requiring significant quantities of affected products. Developers may face increased project costs, potentially leading to delays, reduced profit margins, or the need to scale back on specifications to maintain affordability. With supply chain issues and fluctuating material prices, contractors and developers must take a proactive approach—locking in prices where possible, exploring alternative materials, and maintaining flexibility in project timelines.
With market pressures showing no signs of easing, delaying projects may result in some becoming significantly more expensive to complete. Working closely with your construction partner, builder and lenders will be essential for anyone navigating the housing or commercial construction market in the coming months.
Think Slow Act Fast
Think Slow Act Fast is one of the key strategies we use at Trigg to ensure your project is a success. We’ve learnt that the more planning, iterating, testing, and planning again you do up front (Think Slow), the fewer hassles and surprises (variations) you have once you start (Act Fast). All the hard work is done in the ‘Think Slow’ phase of a project–the stage that shapes the form, fabric and cost of a project. With this in mind and the current economy still stuttering, we’re encouraging our clients to get the ‘Think Slow’ part done now, even up to consent submission, so they’re ‘shovel ready’ to ‘Act Fast’ when the time is right.
If we’ve got you thinking, we currently have capacity to help you understand how Think Slow Act Fast could benefit your project. Start a conversation today – let’s talk
Photo by Ümit Yıldırım on Unsplash
