Building costs growth slows

The latest Cordell Construction Index (CCCI) shows construction costs rose just 0.6% in the March quarter, well below the average quarterly increases of 2% in 2021 and 2022.

The annual growth rate has dipped from a record high of 10.5%, to 8.5% in the three months to March.

Rising interest rates have contributed to this, causing a drop in the number of new homes being consented.

Availability of materials such as plasterboard has improved, timber prices have also stabilised, especially structural timber and metal components are showing a similarly flatter trend for prices.