Building Costs Have Jumped 53%. Is a Buyer's Window Opening?
By Carson Smith | Accredited Building Inspections
The property market can cool without the cost of building a home going backwards.
That's why I think established homes deserve a closer look.
Master Builders Australia reported in October 2026 that the cost of building a new home had increased 53% since the pandemic. Applied to a hypothetical $300,000 build, that's $459,000, an extra $159,000 before land. Actual costs vary by project, but the example shows the scale of the change.
Meanwhile, buyers have become more cautious, properties are taking longer to sell and some sellers are adjusting their expectations.
That combination could create opportunities for buyers who are financially ready and understand what they're purchasing.
Why Established Homes Deserve Attention
When you buy an existing property, you're buying more than the house.
Driveways, fencing, landscaping, retaining walls and connected services may already be there. These are easy to overlook at an open home, and expensive to provide when building.
Master Builders has highlighted the squeeze: established-home prices are easing while labour shortages and material costs limit builders' ability to lower prices.
That makes the comparison worth doing. What would it cost to buy suitable land and deliver something genuinely comparable?
It doesn't mean every existing home is undervalued. Established property prices also rose substantially after COVID. REIQ's June-quarter figures showed Queensland house prices easing slightly over the quarter while remaining well above the previous year. A softer market doesn't automatically mean a cheap market.
A Buyer's Window Is About More Than Price
Cotality's October report showed homes nationally taking a median of 41 days to sell, up from 26 days a year earlier. Local conditions vary, but a slower market can give buyers something valuable: time.
Time to compare properties, investigate defects, obtain repair estimates and negotiate without feeling pressured to rush.
You don't have to predict the exact bottom to make a sound purchase. You need a suitable property, a price supported by comparable sales and ownership costs you can comfortably manage.
Condition Can Make or Break the Opportunity
This is where my perspective as a builder and building inspector comes in.
Dated paint, worn carpet and an unfashionable kitchen can put buyers off. But those cosmetic issues may be far more manageable than water ingress, timber damage or major drainage problems.
A sound home with tired finishes may offer better value than a freshly presented property with unresolved defects.
And high building costs cut both ways: if building is expensive, major repairs and renovations can be expensive too.
A discount means little if the work required consumes the saving. Understand the condition, investigate significant findings and price the necessary repairs before deciding you've found a bargain.
Why I'm Optimistic
HIA's Queensland outlook points to continuing housing needs alongside financial conditions that make new supply harder to deliver. That supports a longer-term case for demand, without guaranteeing when prices will recover.
For prepared buyers, softer selling conditions and expensive new construction may create an opportunity to secure an established home that compares favourably with the alternatives.
The opportunity isn't simply buying below the asking price. It's buying a suitable, sound property at a price that still makes sense if the market takes longer to recover.
Carson Smith is a licensed builder and timber pest technician with Accredited Building Inspections, servicing the southern and central Sunshine Coast and hinterland.