Hope for Housing Affordability

Looking ahead, analysts predict that material prices will continue to decrease starting in 2025. This outlook is supported by potential policy changes in the United States under the incoming Trump administration, which could have far-reaching implications for global material supplies. A key factor in this scenario is Trump’s promise of a peace deal to resolve the RussiaUkraine confict. Russia, a major supplier of raw materials, has been largely restricted from global markets since 2022 due to sanctions. As countries pivoted to alternative suppliers like Brazil and the United States, competition intensifed, driving up prices.

Further adjustments to U.S. tariffs could redirect material supplies away from America, contributing to lower costs globally. Additionally, China’s slowing economy and weakened housing market have resulted in an oversupply of construction materials such as steel, further reducing global prices in recent months.

Hope for Housing Affordability

These international shifts are expected to strengthen Australia’s efforts to meet its ambitious housing targets, addressing the country’s ongoing affordability crisis. For buyers, this marks a potential turning point. After years of limited supply and rising costs, the growing availability of new homes, combined with reduced construction costs, could fnally provide some relief.

The surge in new home approvals refects increased confdence among builders about project viability, signaling a potential shift toward a more balanced housing market. As construction costs continue to decline and housing supply expands, there is renewed hope that affordability will improve, paving the way for more Australians to achieve homeownership.