Episode 44: Where are Australia's Construction Costs Heading?

In this episode, Richard is joined by Trent Wiltshire, Chief Economist at Rider Levett Bucknall (RLB), to discuss the latest findings from RLB's quarterly construction market update and what they mean for developers, investors, and the broader property sector. Trent unpacks how the Middle East conflict sent shockwaves through the construction supply chain earlier in the year, pushing up the cost of fuel, materials, and energy-intensive building products rapidly. They discuss why the outcome has been less severe than many in the industry feared, and what is driving the difference between a price shock and a supply chain breakdown. The conversation then turns to the state of the market across Australia, where construction cost pressures are playing out very differently depending on the jurisdiction. Trent walks through the outlook state by state, examining where activity is heating up, where it remains subdued, and which markets carry the most risk over the next few years. The Olympic infrastructure pipeline, skilled labour shortages, and the rapid rise of data centre construction are all key points of discussion. The episode concludes with Trent's views on the federal budget and interest rate rises, what both mean for housing supply in the near term, and the practical steps developers and contractors are taking to manage risk in this uncertain environment. Trent is Chief Economist at Rider Levett Bucknall (RLB), where he leads the firm's economic analysis and produces RLB's quarterly construction market update, with forecasts extending to 2029. Previously, Trent was Deputy Program Director at the Grattan Institute, where he focused on housing policy and skilled migration. He also held roles at the Victorian Department of Treasury and Finance, the Domain Group, and the Reserve Bank of Australia. His combination of rigorous economic research and close engagement with RLB's quantity surveyors across Australia gives him a distinctive perspective on construction costs, housing supply, and the macroeconomic forces shaping Australia's property environment. This episode is a must-listen for developers, investors, and anyone trying to understand the construction costs across Australia right now. Trent brings together his on-the-ground intelligence and economic analysis to answer the questions the industry is asking: where are costs heading, which states carry the most risk, and what should everyone be watching closely in the months ahead.