This Is Why We Can’t Build Affordable Housing Right Now

Construction costs eased briefly — but they’re rising again, and it’s creating fresh pressure across housing, inflation, and interest rates. In this TPC Gold clip from The Property Couch, the team explains why building a new home is becoming more expensive again, and how global supply shocks, labour shortages, sticky inflation, and rate policy are colliding at the same time. In this clip, we cover: • Why construction costs are accelerating again in CPI data • How labour shortages and supply chains are tightening • The impact of Middle East conflict on energy and material costs • Why builders can’t absorb price rises any longer • How replacement costs support property values • Why rate rises can’t fix supply driven inflation • The tough balancing act facing the RBA If you’re wondering why housing affordability isn’t improving — even as growth slows — this clip connects the dots. *Timestamps:* 00:00 – Construction costs easing, then rising again 00:21 – CPI shows building costs re‑accelerating 00:43 – Labour shortages and supply chain risks 01:06 – Rising replacement costs and affordability 01:39 – Material surcharges and diesel costs 02:02 – Sticky inflation explained 02:34 – Inflation expectations blowing out 03:00 – Why inflation may undershoot forecasts 03:24 – Energy prices and supply shocks 04:23 – What monetary policy can’t control 05:22 – Domestic demand vs supply inflation 06:23 – Why rate cuts reignited inflation 07:20 – What this means for housing demand and supply P.S. This is just a snippet from our Ep 590 | “Property Shock: War, Rates & Tax Reforms, Reshapes Everything! – Chat with Nerida Conisbee” For the full scoop, check it out here 👉 https://thepropertycouch.com.au/ep590-property-shock-war-rates-reform-nerida-conisbee/ P.P.S. And feel free to send in your questions here 👉 https://thepropertycouch.com.au/topics/ We would love to answer them on the show! #ThePropertyCouch #TPCGold #PropertyMarket #ConstructionCosts #Inflation #InterestRates #HousingAffordability #AustralianProperty #PropertyInvesting #EconomicUpdate