Builders warn of price hikes as Middle East war upends supply chains | The Business | ABC NEWS

Alarm bells are ringing in Australia's residential building industry, with some describing "considerable" supply chain disruption and price surges on crucial items as being "like COVID" again. Suppliers are bringing in "emergency fuel levies" for everything from sand to concrete as petrol prices soar due to the war in the Middle East. The chaos could ripple even further, with the industry warning about rising freight costs on materials that need to be imported. Major companies that supply pipes for plumbing are even warning of shortages. There are fears the situation will make building a home even more expensive in 2026, further threatening the Australian government's pledge to build 1.2 million homes over five years. Master Builders' Denita Wawn shared similar concerns about the federal government's housing targets, and what the latest supply chain shocks would do to the price of the Australian dream. The federal Housing Minister Clare O'Neil described the target as "aspirational". Rising building costs will add to inflation. The Reserve Bank of Australia has already been hiking interest rates to tackle resurging inflation in 2026, which will also add to the costs for everyday Australians borrowing to build a home.
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Read more here: https://www.abc.net.au/news/2026-03-23/building-supply-chain-impact-and-shortages/106468234

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