Spiking building costs may see more buyers move towards existing homes

A spike in home construction costs could lead people to have second thoughts about building new.

The latest Cordell Construction Cost index shows the September quarter saw the fastest increase since 2022 – 1.7%.

Cotality Head of Research Nick Goodall says it's due to the war in Iran and the rising volume of new dwelling consents, which reduce capacity and create cost pressures.

He told Mike Hosking that since the value of existing properties is tracking down, or sideways at best, in many parts of the country, some prospective homeowners might see more value in existing properties.

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