September 15, 2025 • 33 mins
Why is building a home in Australia so expensive? Aussie builder Duayne Pearce reveals the real reasons behind rising construction costs in 2025. Get real data, expert insights, and practical advice for homeowners, builders, and anyone interested in the Australian property market.
Learn about:
- Building costs in Australia 2025
- Construction price breakdowns
- Labor, materials, and government fees
- How to save money on your build Subscribe for more tips on home building, renovations, and real estate in Australia!
Check out the Duayne Pearce website here...
https://duaynepearce.com/
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:06):
G'day guys.
Welcome back to another episodeof level up.
We are back in the shed thisafternoon for another cracking
solo episode.
Look, today's episode I reallywanted to do.
I've been wanting to talk aboutthis for a little while, but
it's all to do with.
I'm sick and tired of hearingeverybody the media, the
government a lot of shit onsocial media about the cost of
(00:27):
building.
So I've actually I've done somehomework for this podcast today
and got some data and somenumbers for you, because I think
when you actually start lookingat facts, reality hits home and
it's like, as with most things,things the media is generally
not correct with, um, whatthey're throwing around out
(00:49):
there.
So, um, you've heard me bang ona lot on this podcast about the
cost of building and my beliefis that the cost of building has
continued to rise since the daythat the first hammer was made
and swung to hit a nail in.
It will always continue to rise.
It's just what happens.
Everything in life increases,as I'm about to give you some
(01:12):
examples.
But the other thing thatdoesn't get spoken about is
people's expectations, andexpectations is it's actually at
the, that's at the core, that'swhat's really driving the cost
of building.
But, um, we'll jump into it abit more detail.
So I've actually, before I getinto my stats, so what I've
(01:34):
actually done.
I've had our accounts manageractually go and pull all the
data out of two of our projects.
So one project all.
So both projects are veryidentical very similar size
square meters, both three-storyhomes, both on very steep,
difficult blocks of land, botharchitecturally designed, both
(01:58):
with a very, very similar levelof finish.
So I thought thought, what aperfect opportunity.
So the first house.
Well, perfect opportunity togive you some true, real data.
So what I did was got her to goback.
So the one of the houses webuilt, or we completed the home,
in 2010 and the other one wecompleted in late 2024 or very
(02:22):
early 2025, so 15 years apart um, but these are actual costs.
So this is real data from mybuilding business.
It's not um quotes or anythingwe've done.
This is actual, real data.
So finished cost, um, and yeah,I'm looking forward to getting
into that with you because it'spretty eye-opening.
(02:44):
But before I did that, I justwanted to, I guess, set the tone
for this podcast with some realexamples.
So what I did?
I jumped on Google and chat GTPand I've actually done a bit of
homework and got a few thingshere for you just to set the
tone of this podcast.
So what I did and this is I'vedone all this based on brisbane.
(03:05):
So in uh, in brisbane in 2010,the average cost, the medium
house price, was four hundredand sixty thousand dollars.
In 2025, the median house priceis $1,090,000.
In 2010, the average cost ofunleaded fuel was $1.21.
(03:37):
In 2025, the average cost of alitre of unleaded fuel is $1.91.
In 2010, the average individualwage in Brisbane was $52,000.
Now, in 2025, it actuallydidn't give me a single number.
(03:59):
The average salary or wage fora single person is between
$80,000 and $100,000.
In 2010, here in Brisbane, theaverage cost for a family of
four for groceries each week was$204.
The average cost for a familyof four groceries in 2025 is $2
(04:24):
270.
I think that one's a fair bitout.
I know our family spends a lotmore than that on groceries, but
anyway, this is what Google'sgiven me.
The next one I have for you isthe average hourly rate for a
construction worker.
2010 was $38.
Now in 2025, it's $55.
(04:49):
This last one I've got before Imove on to the cost of building
for me says a lot about how muchwe've changed in the last 15
years, and especially in thegenerations and our expectations
around how we live our life andliving beyond our means.
Because what chat, gtp andgoogle said to me when I asked
(05:11):
them what was the average weeklyspend on eating out and
entertainment for the averagefamily in 2010?
It was 95.
Now, in 2025, the average spendfor a family each week for
(05:33):
eating out and entertainment is455.
So, um, look, everything elseon that list that I just went
through was pretty much bang ondouble.
So in the last 15 years, themedian house price has increased
a bit over double.
(05:54):
The average or the general wagehas increased a bit over double
.
The cost of groceries are notquite double, the hourly rate
for workers not quite double,but the cost of living and what
people are spending and livingbeyond their means is almost
(06:17):
quadrupled.
So, uh, I just wanted to usethose to set the tone for what
I'm going to go through now.
So what I've done here, as Isaid before, I've got two jobs
very, very similar, but 15 yearsapart, and the reason I wanted
to talk through this is there'smultiple reasons.
Number one is I'm sick andtired of just all the media
(06:38):
about the cost of housing,because it is far, far more than
just cost increasing.
As I said, people'sexpectations are completely
different from 15 years ago towhat they are now.
Another huge thing that isn'tgetting spoken about enough is
efficiencies and the amount ofwork that gets done on a daily
(07:02):
basis, and I really think thisis hurting, uh, every single one
of us.
It's costing all of us a lot ofmoney because of inefficiencies
and nowhere near the out.
Like people just aren't puttingthe same output as they did, uh
, in the past, and there's a fewreasons for this.
Like, I believe there's very fewpeople that show up to work
(07:24):
these days with intent.
They don't show up with theintent to get a lot done.
They don't show up withstructure to get a lot done.
They don't show up with a gameplan for the day.
I know back in the day when,well, even now, nothing's really
changed, but back in the daywhen I was on the tools every
(07:44):
single day, driving to work oreven driving home in the
afternoon, I would be planningmy next day, or in the morning
I'm planning that day and in mymind I knew exactly what I would
get done for the day, and somany times I would have a team
meeting with my team andsometimes I'd think I was crazy,
but it was efficient.
(08:06):
We had a plan, we executed itand we got it done.
Nine times out of ten weactually got more done than what
I had planned, whereas what Iwhat I see happening a lot these
days and on my own projects Italk to my supervisor about on a
daily basis is we set plans, weset schedules, we set targets
and very, very rarely do theyget executed.
(08:27):
We always happen to manipulatethings, push things around, move
things, because the output andthe work isn't getting done as
efficiently as it used to.
And look, this isn't just metalking about this.
Every single builder I talk tois complaining about this.
Every single contractor I talkto is complaining about this.
Every single builder I talk tois complaining about this.
Every single contractor I talkto is complaining about this.
Every single employee I'mtalking to, sorry, employer I'm
(08:52):
talking to is complaining aboutthis, and, at the end of the day
, that is all costing us a lotof money, and so it's another
reason that I really I've beenthinking about this for a few
weeks and how I could do it.
And then I was just thinkingabout all of what we used to do
in the past and it just came tome a few nights ago about a job
(09:14):
we've recently finished and ajob we did 15 years ago and how
similar they were and I thoughtwhat an incredible opportunity
to actually we track all theirdata.
We keep it all.
So what an incredibleopportunity to actually go back
and compare some numbers.
And what really surprised me bygoing through this is any items
(09:34):
that would just supply, um,haven't actually increased the
double that it appears that mostthings have doubled in the last
15 years.
The percentage increase wasn'tthat much, but everything that
includes labour has increased alot.
(09:55):
So I'll start running through afew.
So the first one and this isjust the way that the
spreadsheet's been worked out inalphabetical order the first
one is carpentry labour.
So, like I said, these twoparticular jobs were very, very
similar in square meterage, verysimilar in detail all
(10:16):
lightweight claddings on theoutside, all a carpentry,
internal fit out, hanging thedoors and all those sorts of
things.
We've always done our internalfit outs the same way.
Like we hang our own doors, wefit our own hinges.
We don't get any pre-hungrubbish.
So very, very similar jobs andso, and the other thing to, I
guess, just point out before Igo into these numbers is all of
(10:38):
these numbers are excluding GST.
I don't like to work like that,but I know most people do and
that's how our software the jobfrom 2010,.
The total amount of carpentrylabour on the job was 94,834.
(11:00):
For the carpentry labour on theproject in 2025 is 160,497.
So not quite double, but veryclose to it.
So again, you can see that somany figures that I just talked
(11:23):
about were almost double and itseems to be the same with
carpentry labour.
So that obviously has a bit todo with the hourly rates going
up, but that also has a lot todo with the job just taking a
lot longer to do than the hourlyrates going up.
But that also has a lot to dowith the job just taking a lot
longer to do than what it did 15years ago.
And you'll see, there's a,there's a pretty clear pattern
(11:44):
with a lot of these, like withthat double, double figure.
So the next one's electrician.
So and this is onlyelectricians' labour, this
doesn't include electricalfittings.
So electricians' labour for ourjob in 2010 was 24,676.
(12:04):
Our electricians' labour in2025 is 50,168.
So, again, that one's prettymuch bang on um double.
Uh.
The next one I have to, which Ithink is another really good one
, uh, this one was actuallyquite surprising, to be honest.
(12:26):
Um.
The next one is exteriorsoffits and cladding.
So, as I both homes lightweightcladding FC products and again
almost identical.
The one in 2010 had a lot of6mm FC with timber cover battens
, quite a bit of matrix claddingand some weatherboard.
(12:48):
The one we finished in 2025 um,it's very similar had some flat
six mil fc with timber coverbattens.
Um, and then pretty much themajority of the job was um
weatherboard, but and this ismaterials only so all the
cladding for our job in 2010 was13,799.
(13:11):
All the cladding and soffitmaterials on our 2025 project
was $37,047.
So that one is pretty much bangon triple the price.
So, yeah, obviously claddingand soffit materials have had a
(13:32):
huge price increase in the last15 years.
The next one, which again is amaterial, one which and I hope
you guys start to see somecorrelation with this, because
when I was sitting down andgoing through this and I don't
know if you can see my sheet onhere, but like I've literally
got two pages of numbers.
So I've got a lot of data onhere, but I've just gone through
(13:54):
to pull out some ones that arepretty common and people will
understand.
But when I was going throughand just highlighting them
because they're not all in theexact same layout, it blew my
mind a little bit just how thedouble and the triple worked,
and this next one's a perfectexample.
So we just did externalcladding materials and it was
(14:17):
pretty much bang on triple.
The next one is your internalfit out gear.
So this is all your archedraves, skirtings, door jams,
your internal doors and again,these jobs were very, very
similar.
So actually both of them had 62by 19, just pencil round
architraves, 116 by 19 pencilround skirtings and flush doors.
(14:44):
They did have a the.
The door handles was slightlydifferent 15 years ago.
We're still using quite a bitof old school knobs and things.
The newer jobs got the levers,but all the internal fit out
gear.
Actually, just to clarify this alittle bit more, this doesn't
include shelving, because onpretty much every job we do, we
(15:08):
get Civic or our cabinet makersdo the rope shelving, our
cabinet makers do the ropeshelving.
So in the job in 2010, all theinternal fit-out materials were
$5,605.
In 2025, $15,795.
(15:31):
So, look, you're going to see,as we go through this, like
people are complaining that thecost of building is going up and
builders are making a fortune.
And yes, I can understand howthey see that, because to run a
successful business, we'recharging a percentage on the
total job cost and so obviously,if everything's going up, if
(15:54):
everything across theeverything's going up in Crete
in, if everything across theboard's going up, then as
builders we're going to earnmore money as well.
But what people don'tunderstand with that is the
higher the dollar cost of thejob, the more risk and the more
liability that we have asbuilders.
So it's only fair that we earnmore money to make sure that we
(16:16):
cover insurances and all thatother costs that go with it.
But the next one on my list,which I thought was actually
good, was the framing materials.
So we've always done stickframes.
So both these jobs were allstick frame.
They all had ply bracing sheetsframe.
They all had ply bracing sheets, or they both had ply bracing
(16:37):
sheets.
They both had two levels ofsubfloor system, so all your
bearers and joists and they bothused yellow tongue flooring.
So again, very, very similar.
The frame in 2010 was $45,665.
All the frame material in 2025was $77,701.
(17:03):
So that is one of the onlythings on this list.
So that's only an increase of$30,000.
So I'm not sure what thepercentage is there, but, um,
nowhere near double or triple.
Like some of these other costs.
Um, this next one is like I, I,I I hate insurance.
(17:27):
I hate how builders have to payinsurance on the on the works
we do.
I get that we need to pay it.
I think it's a good thing thatwe need to pay it, but I can't
stand how it's worked out.
I'm not sure about other statesof australia, but in in
queensland, the way that we payour insurance levies on our
projects is an absolute rort,and this proves it.
(17:50):
So our I can't remember what itwas actually called back in
2010.
It was, um, it was different towhat it is now, but the home
warranty insurance that we paidon our job back in 2010 and
obviously the dollar value wasdifferent.
So actually to, I guess, giveyou the total cost of the jobs
the 2010 job was just undereight hundred thousand dollars.
(18:12):
The 2025 job was just under$800,000.
The 2025 job was just over $2million.
So, again, we're just overdouble.
But the home warranty insurancethat we paid on the job in 2010
was $2,577.
The insurance we paid on the2025 job was $16,469.
(18:39):
So, as homeowners, this isthings that we need to educate
the homeowners and the clientsthat we work for, because that
is a government body and thathas increased by just over six
times like it's it's it's a sixmultiplier in 15 years.
(19:00):
And, as homeowners, like, wehave to pay that to be able to
build homes for you.
So, like again, everyone'sbanging on about the cost of
building some of the governmentthe, the compulsory government
charges that we have to pay tobe able to build homes are the
things that have increased themost in the construction
(19:22):
industry.
The next one's a supply andlabor one, so painting.
So, again, very similar sizehomes.
Um, the painting the ourpainting contractors invoice in
2010 was 24 352 dollars.
The painting in 2025 is 58 654.
(19:47):
So that's again, um, a bit overdouble.
Uh.
The next one we're going to talkabout is plumbing, and this one
this one actually surprised mea bit.
I double.
The next one we're going totalk about is plumbing, and this
one actually surprised me a bit.
I thought it would have beenincreased by a little bit more.
So this one is plumbing labourand materials for hot and cold
water and plumbing stacks.
(20:07):
It doesn't include all yourplumbing fixtures toilets, taps
and all those types of thingsbut our plumbing invoice from
our contractor in 2010 was$19,796.
Our plumbing contractor'sinvoice in 2025 and is $31,569.
(20:28):
And just to give you a littlebit more detail on that one,
that is the exact same amount ofbathrooms, laundries, kitchens,
the exact same amount ofplumbing fixtures.
So that is just a pure increasein labour and materials to
install those items.
This next one blew me away alittle bit.
(20:49):
So in 2010, we roofed theentire house.
In 2010, we roofed the entirehouse.
So all your your roofingbuttons, your anicon blanket,
your roof sheeting, your bargecaps, your all your flashings,
your fascia and guttereverything for $12,596 in 2025
almost the exact same squaremeterage and size project.
(21:12):
The cost for those same itemsfrom our roofing contractor is
$33,573.
So, triple like.
That's another one of thosetriple.
So basically, in 15 years, thecost to do a roof has tripled.
The next one it's only a smallone, but I just wanted to throw
it in here just to give you someidea was the internal stairs.
(21:34):
So, like I said before, theywere both difficult homes on
three-story homes on a difficultsite, but again, they both had
very similar sets of stairs.
So 2010 the internal polishedgrade timber stairs were 5,428.
In 2025, they're $9,200.
(21:55):
I only got two more to go foryou, but I hope this is giving
you a good indication of wherewe sit with our costings.
And, like I said, this is realdata.
This is the shit that I don'tsee anybody else on social media
, on real media in our industry,talking about.
This is real data from twoprojects, actual cost.
(22:17):
The next one is a massive oneand it's windows.
So in 2010 and look, on thisone I'll tolerate a little bit
because windows have definitelychanged a lot but in 2010 we
paid 25,576 for all the externalwindows, sliding doors, front
(22:38):
door and everything on thisproject.
In 2025, we paid $113,817.
And look, I get that.
The 2025 job did have a huge12-meter sliding door in there,
but apart from that, all theother windows were very similar.
Both jobs had a lot of louvers,both jobs had multiple sliding
(23:01):
doors and both jobs had a lot ofdouble hung windows.
So I actually, when I went backand actually went back through
our google drive and pulled outthe plans and compared these two
jobs.
I was actually quite blown awayhow similar they were, and the
last one I was just going totalk to you about was joinery.
(23:22):
So, again, very, very similarsized kitchens, bathrooms.
The list of joinery items wasalmost identical.
So kitchen pantry, vanities,robes.
They both had a media roomfigure in there, because they
(23:46):
both had cabinets in the mediaroom and they both had, like
shaving cabinets and things inthe wet areas.
So, uh, the 2010 job was 48 648.
The joinery in the 2025 job was124 800.
So, yeah, um, two and a halftimes the cost.
(24:09):
So, look, guys, that's the endof my list.
I've got hundreds of items onhere.
I could go through, but they'rethe main ones and they're the
ones that a lot of people canrelate to the um.
There was a couple more thatI'd really like to go through,
like I want to.
I really wanted to go throughand talk about footings and slab
, just to compare um concretingrates and things.
(24:32):
But I may do that in the future.
But the way we used to price ourjobs and and collater our data
back in 2010 compared to now um,made it a lot harder for those
ones.
But, um, overall you can seethat the cost, even though
there's so much talk in ourindustry about the costs, has
increased dramatically andpeople can't afford houses and
(24:54):
all those types of things.
We need to talk about whatreality is, and that is that, as
you can see from everythingI've just gone through, in the
last 15 years here here inBrisbane I'm basing all my data
on Brisbane, south EastQueensland in Australia
everything on average hasdoubled in cost and even though
the cost of building has a bitover doubled, everyone's wages
(25:18):
has doubled.
But what people, as I pointedout, what people are spending on
entertainment and eating outhas quadrupled.
So people shouldn't becomplaining about the cost of
housing because you can't haveboth.
If you want to be out everysecond night of the week, eating
out, having takeaway, catchingup with friends, going to shows,
(25:41):
movies, all those types ofthings, but you also want to be
able to have a brand new fourbedroom house, two garage, three
bathroom, then you've eithergot to work harder, get a better
job that's going to pay youmore, or you've got to live
within your means.
The other thing that I reallywanted to point out as I said at
(26:04):
the beginning of this podcastis the efficiencies, like a lot
of those costs that, like I said, I've just gone through um
material.
Some materials have, as Ipointed out, some materials have
either doubled or tripled, buta lot of it is labor and with
the labor it's far more to dothan just the the cost of the
labor.
It's all the inefficiencies.
We need our teams on siteshowing up with more intent.
(26:26):
Um, and I think, look, I've hada few bad days in the last few
days.
Just I've really taken itpersonally that my team aren't
quite getting done the amount ofwork that I expect to get done.
And I've had a few toughconversations with both my
supervisors and I think, at theend of the day, we need to start
(26:47):
showing them more like we can'tjust keep talking about it.
We've got to.
We've actually got to get onthe tools and show them this is
how you get it done, this is howyou plan your day.
And, look, I'm not sure what'sgoing on if it's in the water
we're drinking or whatever.
But something that's probablydisheartened me a lot lately is
(27:08):
even the older guys that havebeen taught hard, that got
driven, like I did when I was anapprentice.
They seem to be slowing down aswell and they're not setting an
example for the younger guysthat are coming through.
So we now have these youngerguys that just have these
expectations of what amount ofwork gets done each day.
(27:31):
And look for me, it breaks myheart for the homeowners Like
it's all good to run anefficient business and track all
our data, but at the end of theday, we can't just keep
increasing our prices to coverinefficiencies and people not
working appropriately andgetting enough done on our job
site.
So, look, I think I'm sure thispodcast is going to stir up a
(27:55):
can of worms.
I think it's.
These are discussions that needto be had, because the slower
we get on site, it's just addingto the cost of building homes
and sooner, sooner or later,something's going to have to
give.
Either people's expectationshave got to come back down or
people need to just start payingmore.
(28:15):
They need to realise that itjust costs what it costs.
But we can't just keep bangingon about the cost of building
and not actually deep divinginto why the cost of building is
what it is.
So, yeah, look, hopefully I'vegiven you some good advice today
, or some good knowledge.
Like I said this this is realdata.
Like this is data from twohouses 15 years apart.
(28:38):
Very, very similar, um, and,like I say all the time, the
numbers don't lie.
That's, that's the facts.
Like that is what it is.
So, guys, look, hope you'veliked this podcast.
If you've liked this podcast,if you've got any more questions
or there's any other can ofworms you want me to open, make
sure you reach out, as always,like, share, subscribe.
If you haven't been to mywebsite yet, duanepeircecom
(28:58):
checked out all of our merch.
Make sure you jump on there andgrab it so that you can be
wearing it around and you canhelp me on my mission to create
a new building industry.
Look forward to seeing you onthe next one.
Are you ready to build smarter,live better and enjoy life?
Then head over tolivelikebuildcom.
Forward, slash, elevate to getstarted.
Everything discussed during theLevel Up podcast with me,
(29:20):
dwayne Pearce, is based solelyon my own personal experiences
and those experiences of myguests.
The information, opinions andrecommendations presented in
this podcast are for generalinformation only, and any
reliance on the informationprovided in this podcast is done
at your own risk.
We recommend that you obtainyour own professional advice in
respect to the topics discussedduring this podcast.
G'day guys.
Welcome back to another episodeof level up.
We are back in the shed thisafternoon for another cracking
solo episode.
Look, today's episode I reallywanted to do.
I've been wanting to talk aboutthis for a little while, but
it's all to do with.
I'm sick and tired of hearingeverybody the media, the
government a lot of shit onsocial media about the cost of
(00:27):
building.
So I've actually I've done somehomework for this podcast today
and got some data and somenumbers for you, because I think
when you actually start lookingat facts, reality hits home and
it's like, as with most things,things the media is generally
not correct with, um, whatthey're throwing around out
(00:49):
there.
So, um, you've heard me bang ona lot on this podcast about the
cost of building and my beliefis that the cost of building has
continued to rise since the daythat the first hammer was made
and swung to hit a nail in.
It will always continue to rise.
It's just what happens.
Everything in life increases,as I'm about to give you some
(01:12):
examples.
But the other thing thatdoesn't get spoken about is
people's expectations, andexpectations is it's actually at
the, that's at the core, that'swhat's really driving the cost
of building.
But, um, we'll jump into it abit more detail.
So I've actually, before I getinto my stats, so what I've
(01:34):
actually done.
I've had our accounts manageractually go and pull all the
data out of two of our projects.
So one project all.
So both projects are veryidentical very similar size
square meters, both three-storyhomes, both on very steep,
difficult blocks of land, botharchitecturally designed, both
(01:58):
with a very, very similar levelof finish.
So I thought thought, what aperfect opportunity.
So the first house.
Well, perfect opportunity togive you some true, real data.
So what I did was got her to goback.
So the one of the houses webuilt, or we completed the home,
in 2010 and the other one wecompleted in late 2024 or very
(02:22):
early 2025, so 15 years apart um, but these are actual costs.
So this is real data from mybuilding business.
It's not um quotes or anythingwe've done.
This is actual, real data.
So finished cost, um, and yeah,I'm looking forward to getting
into that with you because it'spretty eye-opening.
(02:44):
But before I did that, I justwanted to, I guess, set the tone
for this podcast with some realexamples.
So what I did?
I jumped on Google and chat GTPand I've actually done a bit of
homework and got a few thingshere for you just to set the
tone of this podcast.
So what I did and this is I'vedone all this based on brisbane.
(03:05):
So in uh, in brisbane in 2010,the average cost, the medium
house price, was four hundredand sixty thousand dollars.
In 2025, the median house priceis $1,090,000.
In 2010, the average cost ofunleaded fuel was $1.21.
(03:37):
In 2025, the average cost of alitre of unleaded fuel is $1.91.
In 2010, the average individualwage in Brisbane was $52,000.
Now, in 2025, it actuallydidn't give me a single number.
(03:59):
The average salary or wage fora single person is between
$80,000 and $100,000.
In 2010, here in Brisbane, theaverage cost for a family of
four for groceries each week was$204.
The average cost for a familyof four groceries in 2025 is $2
(04:24):
270.
I think that one's a fair bitout.
I know our family spends a lotmore than that on groceries, but
anyway, this is what Google'sgiven me.
The next one I have for you isthe average hourly rate for a
construction worker.
2010 was $38.
Now in 2025, it's $55.
(04:49):
This last one I've got before Imove on to the cost of building
for me says a lot about how muchwe've changed in the last 15
years, and especially in thegenerations and our expectations
around how we live our life andliving beyond our means.
Because what chat, gtp andgoogle said to me when I asked
(05:11):
them what was the average weeklyspend on eating out and
entertainment for the averagefamily in 2010?
It was 95.
Now, in 2025, the average spendfor a family each week for
(05:33):
eating out and entertainment is455.
So, um, look, everything elseon that list that I just went
through was pretty much bang ondouble.
So in the last 15 years, themedian house price has increased
a bit over double.
(05:54):
The average or the general wagehas increased a bit over double
.
The cost of groceries are notquite double, the hourly rate
for workers not quite double,but the cost of living and what
people are spending and livingbeyond their means is almost
(06:17):
quadrupled.
So, uh, I just wanted to usethose to set the tone for what
I'm going to go through now.
So what I've done here, as Isaid before, I've got two jobs
very, very similar, but 15 yearsapart, and the reason I wanted
to talk through this is there'smultiple reasons.
Number one is I'm sick andtired of just all the media
(06:38):
about the cost of housing,because it is far, far more than
just cost increasing.
As I said, people'sexpectations are completely
different from 15 years ago towhat they are now.
Another huge thing that isn'tgetting spoken about enough is
efficiencies and the amount ofwork that gets done on a daily
(07:02):
basis, and I really think thisis hurting, uh, every single one
of us.
It's costing all of us a lot ofmoney because of inefficiencies
and nowhere near the out.
Like people just aren't puttingthe same output as they did, uh
, in the past, and there's a fewreasons for this.
Like, I believe there's very fewpeople that show up to work
(07:24):
these days with intent.
They don't show up with theintent to get a lot done.
They don't show up withstructure to get a lot done.
They don't show up with a gameplan for the day.
I know back in the day when,well, even now, nothing's really
changed, but back in the daywhen I was on the tools every
(07:44):
single day, driving to work oreven driving home in the
afternoon, I would be planningmy next day, or in the morning
I'm planning that day and in mymind I knew exactly what I would
get done for the day, and somany times I would have a team
meeting with my team andsometimes I'd think I was crazy,
but it was efficient.
(08:06):
We had a plan, we executed itand we got it done.
Nine times out of ten weactually got more done than what
I had planned, whereas what Iwhat I see happening a lot these
days and on my own projects Italk to my supervisor about on a
daily basis is we set plans, weset schedules, we set targets
and very, very rarely do theyget executed.
(08:27):
We always happen to manipulatethings, push things around, move
things, because the output andthe work isn't getting done as
efficiently as it used to.
And look, this isn't just metalking about this.
Every single builder I talk tois complaining about this.
Every single contractor I talkto is complaining about this.
Every single builder I talk tois complaining about this.
Every single contractor I talkto is complaining about this.
Every single employee I'mtalking to, sorry, employer I'm
(08:52):
talking to is complaining aboutthis, and, at the end of the day
, that is all costing us a lotof money, and so it's another
reason that I really I've beenthinking about this for a few
weeks and how I could do it.
And then I was just thinkingabout all of what we used to do
in the past and it just came tome a few nights ago about a job
(09:14):
we've recently finished and ajob we did 15 years ago and how
similar they were and I thoughtwhat an incredible opportunity
to actually we track all theirdata.
We keep it all.
So what an incredibleopportunity to actually go back
and compare some numbers.
And what really surprised me bygoing through this is any items
(09:34):
that would just supply, um,haven't actually increased the
double that it appears that mostthings have doubled in the last
15 years.
The percentage increase wasn'tthat much, but everything that
includes labour has increased alot.
(09:55):
So I'll start running through afew.
So the first one and this isjust the way that the
spreadsheet's been worked out inalphabetical order the first
one is carpentry labour.
So, like I said, these twoparticular jobs were very, very
similar in square meterage, verysimilar in detail all
(10:16):
lightweight claddings on theoutside, all a carpentry,
internal fit out, hanging thedoors and all those sorts of
things.
We've always done our internalfit outs the same way.
Like we hang our own doors, wefit our own hinges.
We don't get any pre-hungrubbish.
So very, very similar jobs andso, and the other thing to, I
guess, just point out before Igo into these numbers is all of
(10:38):
these numbers are excluding GST.
I don't like to work like that,but I know most people do and
that's how our software the jobfrom 2010,.
The total amount of carpentrylabour on the job was 94,834.
(11:00):
For the carpentry labour on theproject in 2025 is 160,497.
So not quite double, but veryclose to it.
So again, you can see that somany figures that I just talked
(11:23):
about were almost double and itseems to be the same with
carpentry labour.
So that obviously has a bit todo with the hourly rates going
up, but that also has a lot todo with the job just taking a
lot longer to do than the hourlyrates going up.
But that also has a lot to dowith the job just taking a lot
longer to do than what it did 15years ago.
And you'll see, there's a,there's a pretty clear pattern
(11:44):
with a lot of these, like withthat double, double figure.
So the next one's electrician.
So and this is onlyelectricians' labour, this
doesn't include electricalfittings.
So electricians' labour for ourjob in 2010 was 24,676.
(12:04):
Our electricians' labour in2025 is 50,168.
So, again, that one's prettymuch bang on um double.
Uh.
The next one I have to, which Ithink is another really good one
, uh, this one was actuallyquite surprising, to be honest.
(12:26):
Um.
The next one is exteriorsoffits and cladding.
So, as I both homes lightweightcladding FC products and again
almost identical.
The one in 2010 had a lot of6mm FC with timber cover battens
, quite a bit of matrix claddingand some weatherboard.
(12:48):
The one we finished in 2025 um,it's very similar had some flat
six mil fc with timber coverbattens.
Um, and then pretty much themajority of the job was um
weatherboard, but and this ismaterials only so all the
cladding for our job in 2010 was13,799.
(13:11):
All the cladding and soffitmaterials on our 2025 project
was $37,047.
So that one is pretty much bangon triple the price.
So, yeah, obviously claddingand soffit materials have had a
(13:32):
huge price increase in the last15 years.
The next one, which again is amaterial, one which and I hope
you guys start to see somecorrelation with this, because
when I was sitting down andgoing through this and I don't
know if you can see my sheet onhere, but like I've literally
got two pages of numbers.
So I've got a lot of data onhere, but I've just gone through
(13:54):
to pull out some ones that arepretty common and people will
understand.
But when I was going throughand just highlighting them
because they're not all in theexact same layout, it blew my
mind a little bit just how thedouble and the triple worked,
and this next one's a perfectexample.
So we just did externalcladding materials and it was
(14:17):
pretty much bang on triple.
The next one is your internalfit out gear.
So this is all your archedraves, skirtings, door jams,
your internal doors and again,these jobs were very, very
similar.
So actually both of them had 62by 19, just pencil round
architraves, 116 by 19 pencilround skirtings and flush doors.
(14:44):
They did have a the.
The door handles was slightlydifferent 15 years ago.
We're still using quite a bitof old school knobs and things.
The newer jobs got the levers,but all the internal fit out
gear.
Actually, just to clarify this alittle bit more, this doesn't
include shelving, because onpretty much every job we do, we
(15:08):
get Civic or our cabinet makersdo the rope shelving, our
cabinet makers do the ropeshelving.
So in the job in 2010, all theinternal fit-out materials were
$5,605.
In 2025, $15,795.
(15:31):
So, look, you're going to see,as we go through this, like
people are complaining that thecost of building is going up and
builders are making a fortune.
And yes, I can understand howthey see that, because to run a
successful business, we'recharging a percentage on the
total job cost and so obviously,if everything's going up, if
(15:54):
everything across theeverything's going up in Crete
in, if everything across theboard's going up, then as
builders we're going to earnmore money as well.
But what people don'tunderstand with that is the
higher the dollar cost of thejob, the more risk and the more
liability that we have asbuilders.
So it's only fair that we earnmore money to make sure that we
(16:16):
cover insurances and all thatother costs that go with it.
But the next one on my list,which I thought was actually
good, was the framing materials.
So we've always done stickframes.
So both these jobs were allstick frame.
They all had ply bracing sheetsframe.
They all had ply bracing sheets, or they both had ply bracing
(16:37):
sheets.
They both had two levels ofsubfloor system, so all your
bearers and joists and they bothused yellow tongue flooring.
So again, very, very similar.
The frame in 2010 was $45,665.
All the frame material in 2025was $77,701.
(17:03):
So that is one of the onlythings on this list.
So that's only an increase of$30,000.
So I'm not sure what thepercentage is there, but, um,
nowhere near double or triple.
Like some of these other costs.
Um, this next one is like I, I,I I hate insurance.
(17:27):
I hate how builders have to payinsurance on the on the works
we do.
I get that we need to pay it.
I think it's a good thing thatwe need to pay it, but I can't
stand how it's worked out.
I'm not sure about other statesof australia, but in in
queensland, the way that we payour insurance levies on our
projects is an absolute rort,and this proves it.
(17:50):
So our I can't remember what itwas actually called back in
2010.
It was, um, it was different towhat it is now, but the home
warranty insurance that we paidon our job back in 2010 and
obviously the dollar value wasdifferent.
So actually to, I guess, giveyou the total cost of the jobs
the 2010 job was just undereight hundred thousand dollars.
(18:12):
The 2025 job was just under$800,000.
The 2025 job was just over $2million.
So, again, we're just overdouble.
But the home warranty insurancethat we paid on the job in 2010
was $2,577.
The insurance we paid on the2025 job was $16,469.
(18:39):
So, as homeowners, this isthings that we need to educate
the homeowners and the clientsthat we work for, because that
is a government body and thathas increased by just over six
times like it's it's it's a sixmultiplier in 15 years.
(19:00):
And, as homeowners, like, wehave to pay that to be able to
build homes for you.
So, like again, everyone'sbanging on about the cost of
building some of the governmentthe, the compulsory government
charges that we have to pay tobe able to build homes are the
things that have increased themost in the construction
(19:22):
industry.
The next one's a supply andlabor one, so painting.
So, again, very similar sizehomes.
Um, the painting the ourpainting contractors invoice in
2010 was 24 352 dollars.
The painting in 2025 is 58 654.
(19:47):
So that's again, um, a bit overdouble.
Uh.
The next one we're going to talkabout is plumbing, and this one
this one actually surprised mea bit.
I double.
The next one we're going totalk about is plumbing, and this
one actually surprised me a bit.
I thought it would have beenincreased by a little bit more.
So this one is plumbing labourand materials for hot and cold
water and plumbing stacks.
(20:07):
It doesn't include all yourplumbing fixtures toilets, taps
and all those types of thingsbut our plumbing invoice from
our contractor in 2010 was$19,796.
Our plumbing contractor'sinvoice in 2025 and is $31,569.
(20:28):
And just to give you a littlebit more detail on that one,
that is the exact same amount ofbathrooms, laundries, kitchens,
the exact same amount ofplumbing fixtures.
So that is just a pure increasein labour and materials to
install those items.
This next one blew me away alittle bit.
(20:49):
So in 2010, we roofed theentire house.
In 2010, we roofed the entirehouse.
So all your your roofingbuttons, your anicon blanket,
your roof sheeting, your bargecaps, your all your flashings,
your fascia and guttereverything for $12,596 in 2025
almost the exact same squaremeterage and size project.
(21:12):
The cost for those same itemsfrom our roofing contractor is
$33,573.
So, triple like.
That's another one of thosetriple.
So basically, in 15 years, thecost to do a roof has tripled.
The next one it's only a smallone, but I just wanted to throw
it in here just to give you someidea was the internal stairs.
(21:34):
So, like I said before, theywere both difficult homes on
three-story homes on a difficultsite, but again, they both had
very similar sets of stairs.
So 2010 the internal polishedgrade timber stairs were 5,428.
In 2025, they're $9,200.
(21:55):
I only got two more to go foryou, but I hope this is giving
you a good indication of wherewe sit with our costings.
And, like I said, this is realdata.
This is the shit that I don'tsee anybody else on social media
, on real media in our industry,talking about.
This is real data from twoprojects, actual cost.
(22:17):
The next one is a massive oneand it's windows.
So in 2010 and look, on thisone I'll tolerate a little bit
because windows have definitelychanged a lot but in 2010 we
paid 25,576 for all the externalwindows, sliding doors, front
(22:38):
door and everything on thisproject.
In 2025, we paid $113,817.
And look, I get that.
The 2025 job did have a huge12-meter sliding door in there,
but apart from that, all theother windows were very similar.
Both jobs had a lot of louvers,both jobs had multiple sliding
(23:01):
doors and both jobs had a lot ofdouble hung windows.
So I actually, when I went backand actually went back through
our google drive and pulled outthe plans and compared these two
jobs.
I was actually quite blown awayhow similar they were, and the
last one I was just going totalk to you about was joinery.
(23:22):
So, again, very, very similarsized kitchens, bathrooms.
The list of joinery items wasalmost identical.
So kitchen pantry, vanities,robes.
They both had a media roomfigure in there, because they
(23:46):
both had cabinets in the mediaroom and they both had, like
shaving cabinets and things inthe wet areas.
So, uh, the 2010 job was 48 648.
The joinery in the 2025 job was124 800.
So, yeah, um, two and a halftimes the cost.
(24:09):
So, look, guys, that's the endof my list.
I've got hundreds of items onhere.
I could go through, but they'rethe main ones and they're the
ones that a lot of people canrelate to the um.
There was a couple more thatI'd really like to go through,
like I want to.
I really wanted to go throughand talk about footings and slab
, just to compare um concretingrates and things.
(24:32):
But I may do that in the future.
But the way we used to price ourjobs and and collater our data
back in 2010 compared to now um,made it a lot harder for those
ones.
But, um, overall you can seethat the cost, even though
there's so much talk in ourindustry about the costs, has
increased dramatically andpeople can't afford houses and
(24:54):
all those types of things.
We need to talk about whatreality is, and that is that, as
you can see from everythingI've just gone through, in the
last 15 years here here inBrisbane I'm basing all my data
on Brisbane, south EastQueensland in Australia
everything on average hasdoubled in cost and even though
the cost of building has a bitover doubled, everyone's wages
(25:18):
has doubled.
But what people, as I pointedout, what people are spending on
entertainment and eating outhas quadrupled.
So people shouldn't becomplaining about the cost of
housing because you can't haveboth.
If you want to be out everysecond night of the week, eating
out, having takeaway, catchingup with friends, going to shows,
(25:41):
movies, all those types ofthings, but you also want to be
able to have a brand new fourbedroom house, two garage, three
bathroom, then you've eithergot to work harder, get a better
job that's going to pay youmore, or you've got to live
within your means.
The other thing that I reallywanted to point out as I said at
(26:04):
the beginning of this podcastis the efficiencies, like a lot
of those costs that, like I said, I've just gone through um
material.
Some materials have, as Ipointed out, some materials have
either doubled or tripled, buta lot of it is labor and with
the labor it's far more to dothan just the the cost of the
labor.
It's all the inefficiencies.
We need our teams on siteshowing up with more intent.
(26:26):
Um, and I think, look, I've hada few bad days in the last few
days.
Just I've really taken itpersonally that my team aren't
quite getting done the amount ofwork that I expect to get done.
And I've had a few toughconversations with both my
supervisors and I think, at theend of the day, we need to start
(26:47):
showing them more like we can'tjust keep talking about it.
We've got to.
We've actually got to get onthe tools and show them this is
how you get it done, this is howyou plan your day.
And, look, I'm not sure what'sgoing on if it's in the water
we're drinking or whatever.
But something that's probablydisheartened me a lot lately is
(27:08):
even the older guys that havebeen taught hard, that got
driven, like I did when I was anapprentice.
They seem to be slowing down aswell and they're not setting an
example for the younger guysthat are coming through.
So we now have these youngerguys that just have these
expectations of what amount ofwork gets done each day.
(27:31):
And look for me, it breaks myheart for the homeowners Like
it's all good to run anefficient business and track all
our data, but at the end of theday, we can't just keep
increasing our prices to coverinefficiencies and people not
working appropriately andgetting enough done on our job
site.
So, look, I think I'm sure thispodcast is going to stir up a
(27:55):
can of worms.
I think it's.
These are discussions that needto be had, because the slower
we get on site, it's just addingto the cost of building homes
and sooner, sooner or later,something's going to have to
give.
Either people's expectationshave got to come back down or
people need to just start payingmore.
(28:15):
They need to realise that itjust costs what it costs.
But we can't just keep bangingon about the cost of building
and not actually deep divinginto why the cost of building is
what it is.
So, yeah, look, hopefully I'vegiven you some good advice today
, or some good knowledge.
Like I said this this is realdata.
Like this is data from twohouses 15 years apart.
(28:38):
Very, very similar, um, and,like I say all the time, the
numbers don't lie.
That's, that's the facts.
Like that is what it is.
So, guys, look, hope you'veliked this podcast.
If you've liked this podcast,if you've got any more questions
or there's any other can ofworms you want me to open, make
sure you reach out, as always,like, share, subscribe.
If you haven't been to mywebsite yet, duanepeircecom
(28:58):
checked out all of our merch.
Make sure you jump on there andgrab it so that you can be
wearing it around and you canhelp me on my mission to create
a new building industry.
Look forward to seeing you onthe next one.
Are you ready to build smarter,live better and enjoy life?
Then head over tolivelikebuildcom.
Forward, slash, elevate to getstarted.
Everything discussed during theLevel Up podcast with me,
(29:20):
dwayne Pearce, is based solelyon my own personal experiences
and those experiences of myguests.
The information, opinions andrecommendations presented in
this podcast are for generalinformation only, and any
reliance on the informationprovided in this podcast is done
at your own risk.
We recommend that you obtainyour own professional advice in
respect to the topics discussedduring this podcast.
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