Nearly half of Queenslanders building their dream homes are risking cost blowouts of up to $100,000, as construction prices and tradie shortages reach a breaking point.
Data analysis by tax depreciation firm TDA found 44.9 per cent of new dwellings cost more than expected during building approval, with demand stretching builders thin and international conflicts spiking the cost of materials.
Close to 50 per cent of Queenslanders constructing their perfect home spend more than they bargained for during a build, thanks to short supply of builders and materials.
Owner-builders Zac and Sara Krstev have worked on constructing fifty homes together, and said delivering homes was growing harder and more expensive than ever thanks to these constraints.
“There were days when we expected eight trades and only three turned up,” Mr Krstev said.
“But it wasn’t their fault. Good trades are in high demand and stretched across a lot of projects.”
Experienced builders Zac and Sara Krstev said trade workers in 2026 were being pulled across too many projects at the same time. Picture: Lyndon Mechielsen/Courier Mail
Mr Krstev said construction costs once rose annually, but now moved every quarter, and builds needed to keep up with rising prices while owners fostered good relationships with their builders.
“There are so many elements to co-ordinate,” he said. “You must make those decisions early and understand how everything will work together. One delayed decision can hold up multiple trades and add significantly to the cost.”
Building broker and building adviser Kerri-Ann Hooper said choosing the wrong builders during the planning stage could put you $100,000 out of pocket.
Building broker and building adviser Kerri-Ann Hooper said buyers who went with cheap builders upfront could be missing the unexpected costs tacked on during construction.
“Once the builder starts on site, they will need extra piering, or the builder may strike rock,” she said. “All things that the client was not aware of, and puts them anywhere from $20,000 to $100,000 out of pocket.”
But even experienced builders are feeling the heat. Zac and Sara Krstev’s latest build for sale is a luxury five-bedroom property at 26 Rigel St, Coorparoo.
The boutique home at 26 Rigel St, Coorparoo, is the Krstev family’s 50th project, and saw a three-month delay on materials the family thought were a guarantee.
The property is up for sale with Place Woolloongabba, and required careful planning for the experienced builders to complete it to their standard.
The owners of One Property & Design co-ordinated closely with each other on each element of the boutique property, from the design of the spa to getting the right imported materials and cabinetry for the interior.
But despite their years of experience, the pair had a three-month delay on cabinetry materials during construction, after being repeatedly told they were about to arrive.
“Unless buyers have significant building experience, attempting a home of this complexity themselves can lead to longer delays, higher costs and an overwhelming number of decisions,” Mr Krstev said.
“One delayed decision can hold up multiple trades and add significantly to the cost.” Picture: Lyndon Mechielsen/Courier Mail
TDA director Daniel Farrugia said investors without a good financial adviser were missing out on making back thousands of dollars a year, with that number growing when build prices increase.
“We’ve had dramatic rises over the last five to seven years, just with Covid and the supply shortages over time,” he said. “The silver lining for that is the depreciation claims they can get are rising as well.”
“For a typical 4 bedroom residential property, on average you can get about $15-20,000 in depreciation claims in the first year alone … [but] there are a lot of new investors in the market, and they haven’t been exposed to it before.”
TDA director Daniel Farrugia said investors jumping into the market for the first time were often unaware of the depreciation claims they could make on a new investment home.
”As a general theme, building costs are always exceeding what the estimate is.”
Mr Farrugia said saving money on building a home was a difficult exercise, which included finding the right builder contract and substituting finishings for investors to get higher depreciation later.
“As a general theme, building costs are always exceeding what the estimate is,” he said, and said builders often set contracts where their fee would be a fixed amount above the price of materials.
“If lumber or steel goes up the builder doesn’t mind, because they’ve got their fixed price on it. But for an owner, their costs [can rise] significantly.”
David Reid Homes managing director Matt Jackson said thousands could be saved on a new home by thinking about how the interior features would be used by its residents.
For smaller builds, boutique custom home service David Reid Homes analysed where the most common mistakes were, and managing director Matt Jackson said many were simple elements that could thousands during a build.
“We spend so much time working with couples and families during the design process,” he said. “Children grow up, parents get older and lifestyles change. Small decisions like wider doorways, step-free showers, better lighting and smarter storage can make a home far more enjoyable for decades.”
“Before signing off on your plans, ask everyone in the family how they actually live … those conversations can save years of frustration and thousands of dollars in renovations later.”