The Hidden Cost of Waiting to Build or Renovate in Queensland

Something we hear a lot in our industry...

“We might wait and see if prices come back down.”

And honestly? We understand why.

The last few years have been confronting for homeowners and builders alike. Construction costs moved rapidly. Quotes changed faster than many people expected. Projects that may have felt achievable in 2019 or 2020 suddenly looked very different by 2022.

But something important is happening in the Queensland construction industry right now.

Many people think the market has “settled” and that waiting longer may eventually bring prices back down.

Historically though, that’s rarely how construction behaves.

The Data Is Telling A Bigger Story

The Australian Bureau of Statistics (ABS) construction pricing data shows exactly how dramatically construction costs have shifted since 2020.

Queensland residential construction costs surged during COVID, stabilised briefly through 2024 and early 2025, and are now seeing renewed escalation pressure with ongoing global supply and freight pressures.

Builders across Australia are again reporting:

• supplier price increases

• new levies and surcharges

• labour shortages

• increased infrastructure competition

• rising subcontractor pricing

• material shortages

• ongoing demand pressure

  
  

In addition, Queensland facing increased pressure from:

• continued population growth

• housing shortages in both established and new markets

• major infrastructure spending

• Brisbane Olympics preparation

• increasing competition for skilled trades

  
  

Queensland Residential Construction Cost Growth Since 2020

Queensland residential construction cost escalation graph showing rising building and renovation costs from 2020 to 2030.

Historical data based on ABS Producer Price Index trends. Forecast projections illustrative only and reflective of current supplier pricing trends, SEQ labour shortages and infrastructure demand.

What this graph highlights is something many homeowners are already beginning to feel in real time; the market is changing again.

The market probably won't ever be returning to pre-COVID pricing.

Instead, what we’re entering is another construction pressure cycle.

The best time to build was yesterday. The next best time is now.

The Financial Cost Of Waiting

One of the biggest misconceptions in construction is that waiting will save money.

Sometimes it can.

Historically, long term pricing has generally continued trending upward.

Often what happens is:

• projects get delayed

• prices stabilise briefly

• then costs continue climbing from a higher base

  
  

…and we are already seeing this happening again…

And while percentage increases may appear small on paper, they compound quickly on real projects.

To put this into perspective:

If your new home or renovation was expected to cost around $350,000 in 2020, that same project today could realistically be sitting somewhere around $500,000 or more depending on specification, site conditions and scope.

And if current labour shortages, supplier increases and infrastructure pressure continue through South East Queensland, that same project could potentially be closer to $600,000+ by 2027.

That is the part many homeowners don’t fully realise until they revisit a project years later.

The same budget often simply buys less.

And renovations can experience even stronger escalation pressure than new homes.

Why?

Because renovations are heavily labour driven.

Unlike volume style new builds, renovation projects involve:

• demolition

• complex sequencing

• working around existing structures

• problem solving hidden conditions

• custom detailing

• smaller scale inefficiencies

• more specialised trades

• occupied homes and restricted access

  
  

Projects relying heavily on concrete, bricks and steel have also experienced particularly aggressive increases over recent years.

Pools are a great example of this.

Between concrete, steel reinforcement, excavation, tiling, glass fencing, pumps, freight, labour and engineering requirements, many pool projects have experienced substantial escalation since 2020.

We regularly speak with homeowners who are shocked to discover that projects they expected to cost $80,000–$100,000, which would have been accurate a few years ago are now significantly beyond those earlier expectations.

The Emotional Cost Is Often Bigger

The financial side is only part of the story.

What people don’t always talk about is the emotional cost of living in limbo.

What your likely to experience is:

• increased rent or holding costs

• redesign fees and updated consultant costs

• expired approvals and certifications

• reselections due to discontinued products or pricing changes

• temporary repairs on ageing spaces

• ongoing maintenance and patch work

• rising interest rates or lending changes

• reduced energy efficiency in older homes

• requirements to meet new construction codes

• living for years in spaces that no longer function properly

• stress from clutter, lack of storage or poor layouts

• putting lifestyle improvements on hold waiting for the “right time”

  
  

What Will Your Money Actually Buy Later?

And it’s also important to consider that while rising construction costs can sometimes feel understandable on paper because wages and general living costs are increasing too, the bigger question is:

What will your cash actually buy in the future?

And what will the bank actually lend you at that point in time?

Because while incomes may gradually increase over time, construction costs can often rise far faster during high demand periods.

What many homeowners experience is that the same savings, equity position or borrowing capacity simply delivers less project scope a few years later.

A renovation that once included the extra bathroom, pool, extension or higher end finishes may eventually require compromises just to stay within budget.

And lending conditions can change too. Interest rates, servicing calculations, living expense assessments and valuation outcomes all influence what a bank is willing to approve at the time you’re ready to proceed.

So while waiting can sometimes feel financially safer in the short term, it’s important to also consider the long-term purchasing power of your money and whether delaying may actually reduce what is achievable later on.

We have personally experienced this ourselves.

Like many people, we also thought at one point that perhaps waiting things out may work in our favour. No one could have predicted the full impact of the COVID era construction surge.

But over time, what we found was that:

• construction pricing kept moving

• supplier increases continued

• opportunities changed

• and the same project ultimately became more expensive later than it would have been earlier.

  
  

That’s not fear based marketing.

It’s simply the reality many homeowners and builders have lived through over the past five years.

We see this often. Families waiting for the “perfect time” while continuing to live in spaces that no longer support the way they actually live.

And sometimes the hidden cost becomes years of frustration, stress and decision fatigue.

This Doesn’t Mean You Should Rush

This isn’t about pressure.

And it definitely isn’t about saying every project should start immediately. What it does mean is that now more than ever, informed planning matters.

Good planning matters.

Feasibility matters.

Budget alignment matters.

The right project at the wrong time can still create stress.

But we do believe homeowners deserve transparent conversations about what is actually happening in the market, rather than simply assuming construction prices will eventually “go back to normal”.

What you should do now:

• do your homework

• remain flexible

• and be open to the possibility that what you think construction pricing “should” cost and what the market is actually charging today may be very different.

  
  

We completely understand an upshift in pricing can be confronting and make your project seem unachievable, but knowledge is power and breeds creativity during your planning phase.

And while not every quote will represent equal value, consistently hearing similar pricing feedback from experienced builders is often worth paying attention to.

Sometimes the project scope itself may need to evolve.

That could mean:

• staging works overtime

• simplifying layouts

• adjusting selections

• reducing structural changes

• reconsidering size expectations

• or focusing budget into the areas that create the biggest lifestyle impact

  
  

This isn’t failure or missing out.

It’s smart value planning.

The homeowners who generally navigate changing markets best are often the ones who stay informed, remain adaptable and make decisions based on current realities rather than outdated expectations.

A well-planned project with realistic expectations will almost always create a better experience than chasing a number the market simply can no longer support.

The Value Of Early Builder Involvement

One of the best ways to navigate uncertain markets is early planning.

Working with a builder early allows:

• realistic budgeting

• smarter staging options

• value engineering opportunities

• better understanding of allowances and risks

• clearer expectations before final design completion

• better alignment between scope and budget

  
  

It also helps homeowners make informed decisions earlier rather than designing a project around outdated pricing expectations or a wish list.

We believe it’s time to start thinking about builders not just as the people who physically construct your project, but as part of the broader planning and development process as well.

A good builder can often provide valuable insight early around:

• buildability

• budgeting

• sequencing

• site constraints

• design efficiency

• staging opportunities

• and where money is best invested for long term value

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That early collaboration can save significant stress, redesign costs and unrealistic expectations later in the process.

But it’s also important to recognise that this knowledge, experience and feasibility work takes real time.

Detailed builder input should not always be expected for free, particularly when builders are investing hours into reviewing plans, assessing risks, pricing scopes and helping shape a project before construction even begins.

In many cases, investing in professional builder advice early can place homeowners in a far stronger position to make informed decisions and move forward with greater confidence.

Final Thoughts

Nobody can predict the future perfectly.

But history has shown that construction costs rarely move backwards long term.

And while markets may stabilise temporarily, Queensland is currently entering a period of significant infrastructure demand, housing pressure and labour shortages that are already beginning to impact supplier and contractor pricing again.

If you’re considering building or renovating, the goal shouldn’t necessarily be to “time the market perfectly”.

The goal should be:

• understanding the real costs

• planning properly

• making informed decisions

• and creating a project that genuinely improves your lifestyle and long term goals

  
  

Because sometimes the cost of waiting ends up being far more than just financial.