Home Extension & Renovation Cost Index
Sydney home extension and renovation costs remained steady during July, with no movement in the HERC Index. We take this opportunity to present our readers with some data on the state of renovations in Australia, courtesy of the HIA Renovations Roundup magazine. In summary, observations and forecasts include:
- a slight downturn in renovations activity during 2017, followed by continued growth from 2018 through to at least 2020;
- home renovations in NSW represent approximately one third of the total value of home renovations in Australia, accounting for nearly $10 billion of the $32 billion national figure;
- despite low wage inflation, the majority of renovation builders have felt the pressure of rising labour costs. (Note: The HERC Index has tracked increases above CPI over recent years; much of this can be attributed to labour cost increases, which in turn have been fuelled by supply & demand factors).