Builders Face Profit Pressure Despite Strong Housing Demand

Despite ongoing housing shortages, many residential builders are not experiencing improved profitability.

Industry surveys indicate many building businesses expect limited profit growth due to rising insurance costs, regulatory changes, and prolonged approval processes.

Construction companies continue to manage cost volatility while operating under fixed-price contracts signed during earlier economic conditions.

The result is a paradox within the industry: strong buyer demand exists, yet financial pressure remains high for builders delivering new homes.

Experts suggest improving project certainty and reducing administrative delays could help

stabilise builder margins and encourage increased construction activity.