Housing target depends on faster land supply
Residential land prices fell just 0.4% in the March quarter to $403,570, but are still 8.7% higher year-on-year. Land costs are growing more than twice as fast as inflation and nearly twice as fast as wages.
Median residential land price is $403,570, up 8.7% year-on-year — growing more than twice as fast as consumer prices.
Are rising land prices slowing housing starts and hurting my building workload?
Builders and developers face rising land costs that squeeze project margins and slow housing starts, directly affecting workload pipelines for builders, concreters and allied trades.
Key takeaways
- Median residential land price sits at $403,570 after a tiny 0.4% dip in the March quarter.
- Land prices rose 8.7% over the past year, outpacing inflation and wages growth significantly.
- Slow land supply is a key barrier to meeting national housing targets.
- Trades reliant on new housing starts may see fewer projects if land costs stay elevated.
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