Building Costs Rise Sharply Across Australia, US, Portugal

The cost of building homes and apartments is rising sharply across various regions, driven primarily by expensive construction materials and labor shortages. In Australia, record-high apartment prices reflect the high costs of construction, making affordable housing difficult to achieve. In the U.S., building material prices have climbed steadily, with tariffs on steel, lumber, and copper products adding approximately $11,000 to the cost of a standard single-family home; these increases are reshaping homebuilding economics and causing budget overruns and construction delays. Texas homeowners experienced some property tax relief in 2024, but overall homeownership costs, including insurance and utilities, increased, placing a greater financial burden on residents. Similarly, Portugal faces its highest new home construction costs in over two years, mainly due to a significant 8.9% rise in labor costs compounded by material price increases. These trends underscore the complex challenges in making housing more affordable amid rising input costs and supply constraints.