Clients are often surprised by today’s costs for completing building work on their homes. When clients have a big gap in time between significant projects they are often left saying “It never used to cost this much, why?”

LC Designer Homes have dug a little deeper to see if we could explain why. And here are our significant findings. 

Materials costs have risen with inflation while still being vulnerable to increases in labour and transport too. An increase of 2.5% to GST in 2010 and todays current supply squeeze in the market both here and overseas, paint a clearer picture. The Timber Framed Buildings Standard underwent a complete re-haul post the Christchurch earthquakes, reducing spans has resulted in more materials needing to be used to all new homes.

Labour is a large portion of any build and really impacts on the overall cost. It is no surprise that the charge for skilled and qualified staff has risen significantly. On top of pay there are now schemes like kiwi saver and increases to leave that add to overall labour value. As an example, our first-year apprentices are now charged at $35 an hour, something 10 years ago would have felt exorbitant.

Transport for us, our subtrades, and suppliers has associated costs that have gone up in price, the most obvious being fuel. In 2009 the average price for ‘95, as reported by the AA, was $1.63ltr, at the start of November this year it was $2.71ltr. An increase of over 65%, with diesel not far behind. 

The internet. As a client you have never been more aware of current trends, options for materials, fixtures and finishes. Everyone wants their home to have some of those special features, incorporate indoor outdoor flow and cater to our lifestyle. Designs now include larger and more rooms, have more glazing, higher ceilings, with each design being unique to each client. Our desire to be different reduces the benefit of any shared cost of a group home.

Once you put everything together there is no doubt as to why the price of construction has risen considerably in the last 10 years. Take our much loved $1 loaf of bread from 2014. Today it’s $1.40, a 40% increase! Reminding us we can’t turn back time and even the most prudent building contractor, using competitive suppliers, efficient sub trades can only reduce costs so much.

In answer to the question of “It never used to cost this much, why?” You’re right it never did, but at least we know why.