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Inflation forces surge in tradie prices but homeowners willing

July 27, 2022 Leave a Comment

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As Australian households tackle rising living expenses amid increasing inflation rates, local tradie business owners are doing their best to reduce the impact on home improvement costs.

โ€œWeโ€™re living in conditions where prices are inflated across the board but renovations and home repairs donโ€™t stop. Thatโ€™s why our tradies are essential to keep the country moving,โ€ said Roby Sharon-Zipser, CEO of hipages, who just released a Tradie Trends Report.

Home improvement prices

In 2022, 85% of Australia’s tradies have had to increase their prices primarily due to surging building material and petrol costs, with more than half forced to do so in the past three months. For the vast majority of tradies (84%), any price increase has been made with great hesitancy, with the majority only willing to increase their prices by 10%.

While the report shows that close to a quarter (23%) of tradies have had to increase prices to make up for financial losses over the tumultuous past 12 months, some are attempting other strategies, such as exploring more innovative, affordable materials for their customers (59%), and many are also seeking to minimise the distance of travel between jobs (38%) to lower fuel usage.

Material costs surge

According to tradies, the current cost of materials is doing the most damage to the bottom line and remains the main reason (62%) theyโ€™ve had to increase prices. This is unsurprising, as the domestic and global supply of building materials is tight, with shipping delays, strong demand, ongoing supply chain disruptions, and high international freight costs impacting suppliers andย  businesses. Ongoing shortages of timber and increasing metals prices have placed added pressure on material costs, with input prices to house construction rising 15.4% over the past 12 months due to timber, board and joinery increasing by 20.6%, and other metal products seeing a 16.2% surge.

Cost of living impact on renovation and repair

Despite the cost of living pressures, and 91% of respondents being concerned about inflation in some way, over a third of homeowners intend to spend $5,000 on renovations or repairs in the next six months. When asked why they intend to spend on their home, the majority responded for repair and maintenance (68%). A further 22% will be catering to changing living needs, while 20% will be updating a home they purchased. 

When it also comes to price, more are inclined to pay more for tradies with more experience (50%), those that are local to their home (45%), and those they have received recommendations for (44%), over tradies that could complete the job quicker than others (31%).ย A total of 60% of homeowners say that theyโ€™re not willing to pay more for jobs being completed sooner.

When asked what renovations they had planned in the next 12 months, interestingly the majority opted for money-saving additions to their home including solar power, lighting, security and automation (27%), solar panels (20%), and water conservation (11%).

Of concern is that more than half of households donโ€™t give themselves a big enough safety net in their budgeting (stating safety nets of only 0-to-10%) for home improvement jobs. In the current climate, hipages recommend homeowners allocate a budget buffer of 10-to-20%.

Skills shortage: wages increase but apprentices let go

Tradie businesses are trying to support and incentivise employees as inflation rates impact living costs, with almost two-thirds (63%) claiming to have increased pay to their employees. And itโ€™s not just employees who are receiving support from business owners, with 61% of those who use subcontractors having also increased their pay packets. For the vast majority of these increases, the pay rise has been 5-to-10%.

Unfortunately, however, the next generation of tradies are being negatively impacted by rising overheads, with nearly a third (27%) of apprentices being let go. The research also shows just half of the businesses (51%) currently have an apprentice on board.

More info about hipages

Australia’s first COVID-19 vaccination badge for tradies is now live
Australiaโ€™s largest online tradie marketplace, hipages, has announced Australia’s first COVID-19 vaccination badge for tradies, meaning homeowners can now easily…

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The renovation of this 80s beach shack @camillo_ho The renovation of this 80s beach shack @camillo_house is a work of art and while almost every surface was updated, the decision to keep the original slate floor was genius if you ask us. 

Owner @clarehillier__ says: "With its purple, pink, red and brown tones, the slate was the starting point for our interior palette."

Come and check out the before and afters via link in bio now and read the reno story. It's a real beauty.

And you can book it for your next holiday too!

Blair Smith Architecture @kateshanasy

#slatefloor #slatefloors #80shouse #80sbeauty #camillohouse #interiorsblog #interiorsblogger #interiorsaddict #theinteriorsaddict #jenbishop #realreno #holidayhousesofinstagram #morningtonpeninsulahomes #morningtonpeninsula #morningtonpeninsulasmallbusiness #blairgowrie #blairgowriebeach #airbnbstyle
Me and my boys ๐Ÿ’— Me and my boys ๐Ÿ’—
Just a couple of dorks who've been friends for thr Just a couple of dorks who've been friends for three decades going out for a child-free dinner ๐Ÿ’“๐Ÿ˜
Excuse me while I die of a cute attack ๐Ÿฅฐ @damia Excuse me while I die of a cute attack ๐Ÿฅฐ @damianfrancis 

This doesn't happen often these days!
Hello friends! Just thought I'd say hi. Two weeks Hello friends! Just thought I'd say hi. Two weeks since leaving hospital and I'm doing much better than I expected to be at this early stage. A long recovery road ahead but making progress in how much I can move my arm and although I drag myself through some days non-stop yawning, others I can go for a little walk or out for lunch before collapsing on the couch! I can now tie my own hair back and put on a real bra which is very exciting ๐Ÿคฃ Having my bestie here to help us with the boys, drive me places and just be brilliant positive company is the best thing I could have asked for not to mention the many Dinner Ladies vouchers from friends! Thanks for all your kind messages, cards, flowers, gifts and offers of help โค๏ธ
I definitely feel like a statistic now but hoping I definitely feel like a statistic now but hoping to raise some awareness off the back of my misfortune (and also very lucky escape).

@newsouthwaleshealth have just put out this warning about a rise in serious bacterial infections. iGAS (invasive group A streptococcus) is what caused my necrotising fasciitis and sepsis.

Apparently there's similar happening in VIC too.

It's extremely rare but very serious nonetheless so please have a read and be aware of symptoms. I've linked to the article from a button via my link in bio.

#interiorsaddict #jenbishop #necrotisingfasciitis #groupastrep #groupastreptococcus #sepsis
While new technologies continue to shape the inter While new technologies continue to shape the interior design scene, one that has been getting a fair bit of traction of late isย marble-look porcelain. A cheaper alternative to natural stone, the latest printed porcelain tile technology makes it difficult to distinguish from the real thing.

Founded by husband and wife duo Anton and Rita Bourtsev, Sydneyโ€™s @kaolintiles has a unique offering in this space with over 100 different marble-look tile designs in small and large formats.

More via link in bio now.

#porcelain #porcelaintile #porcelaintiles #largeformattiles #largeformattile #marblelooktiles #bathroomtrends2023 #interiorsaddict #theinteriorsaddict #heartyourhome #realrenovations #goldsink #brasssink #jenbishop #kaolin #kaolintiles #interiorsblog #interiorsblogger
Promise this is the last wretched hospital photo I Promise this is the last wretched hospital photo I'll post and I hope to be home and with my lippie back on by Monday. You know it's serious when I'm lipstick free, right?!

This was about a week ago in intensive care. And although my arm is still bloody sore I'm now on a normal ward and no longer attached to any drips, drains or a catheter. I've come a long way.

This has been the most physical and mental challenge of my life but I'm through the worst. I kept my arm. The doctors saved my life.

I cannot say it enough times. If you're worried about your health, don't hang around. Things can change so quickly. 

A huge thanks to my amazing husband @damianfrancis We've had the hardest year yet and our marriage has never been stronger, even if my rings did get cut off my finger in hospital ๐Ÿ˜œ

As great of a job as he is doing at home with the kids, I cannot wait to get home now. Countdown is on to a new year and a fresh start.

And I can't say enough just how overwhelmingly grateful I am to all the medical professionals involved in my care, from the @healthdirectaus nurse who sent me to Emergency to the exceptional surgeons, doctors, nurses and support staff.

Happy New Year, everyone. Remember you never know what's around the corner and this is not a dress rehearsal!

And huge thank you for all your kindness here. Has been amazing while stuck in bed.

Xxx

For those who missed it, I was unlucky enough to get necrotising fasciitis. You'll have to Google it.
The unluckiest girl or the luckiest? Day 6 in int The unluckiest girl or the luckiest?

Day 6 in intensive care after suddenly coming down with a very serious necrotising fasciitis in my elbow on Sunday. Four operations later (with more to come) I'm out of the woods, alive and have my arm. But I won't be going home until after Christmas. Also picked up a bonus bit of pneumonia to keep things interesting.

I won't lie. This has been super super hard but I feel extremely lucky nonetheless. Have come across some exceptional surgeons, anaesthetists, doctors and nurses who have been incredibly kind at my most vulnerable as well as great at their jobs. I'm really grateful. Huge thank you to my amazing husband who is holding down the fort with the help and cooking of our wonderful friends. And to friends who check in, send love, flowers, snacks and sushi, I will never forget it.

Of course I will be sad tomorrow but my boys can visit and we will have another Christmas next month.

I'll leave you with this. Never ever ignore those health niggles. @healthdirectaus is always a great starting point.

Wishing you all a merry Christmas and will enjoy everyone else's celebrations on here with only a hint of bitterness ๐Ÿ˜‰

PS. Does this win the most unflattering photo of me ever published? I think so! No lippy for a WEEK.
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Jekyll Chau

About Jekyll Chau

Jekyll Chau is interning at Interiors Addict as part of his Master of Communication and Journalism at UNSW.

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