Home Extension & Renovation Cost Index
The HERC Index moved only slightly during August (less than 0.5%), reflecting some past cost increases that had not yet been applied.
Over the last 12 months, construction labour cost increases have put upward pressure on project prices, however, the HERC Index shows that overall the cost of a major home renovation increased by just 2.65%.
The demand for major home renovations remains strong, with higher Sydney property values bringing down the relative cost of adding more liveable area. For many families, a home addition remains a viable alternative to re-locating.