Special Report : Builders face cost squeeze

Interest rates, labour shortages, material costs and compliance issues are affecting WA's housing industry, yet it's the issue of housing affordability that is front of mind for builders, as Emily Piesse reports.

By most people’s reckoning, a multi-million dollar bill for construction costs would be more appropriate for a commercial building than a single house.

Western Australia’s housing industry appears to be struggling on most fronts, according to market indicators.

Homebuilders in Western Australia are facing rising input costs, created by a shortage of skilled labour and increased regulatory compliance.

A mid-year fall in the number of new dwellings bought by first homebuyers was one of the first signs of a softening in Western Australia’s housing market in 2007.

One of the common criticisms of first homebuyers made by older generations is that their expectations are too high.