Iran War hits home construction prices with largest spike in almost four years

Home construction prices have had their biggest jump in almost four years, as new data reveals the ongoing Iran War has tanked affordability for materials across the country.The Housing Industry Association’s latest quarterly outlook report found national construction prices rose 2.1 per cent: the largest increase since the September quarter of 2022. This was a higher rise than the previous three quarters combined, indicating an acceleration in construction costs over the past several months.David Reid Homes managing director Matt Jackson said his builders had been informing clients of price increases for materials much more frequently since the war began.“It’s been like this for a while, since the start of this year,” he said. “Increases are coming from the Strait of Hormuz [block] and petroleum products coming up in price.”Australia’s construction costs rose 2.1 per cent over the last quarter: the largest jump in nearly four years, and more than the past three quarters combined.HIA senior economist Tom Devitt said recent ABS data used in their report was the first real indication of the war’s impact on building affordability.“We had been hearing on the ground from our members rel...