Building a house can be an exciting endeavour. However, there is one lingering question, how much is this all going to cost? Thanks to recent world events, the cost of building a house has changed dramatically in the last few years.

However, the pandemic isn’t the only variable that affects the overall cost. In fact, everything from build location and the style of home to the materials used and the desired timeframe can change the cost of your build considerably. 

When it comes time to build a house and of course, craft a robust budget, it is best to be well researched and informed. This way, you can turn your dream plans into a reality without breaking the bank. 

How COVID-19 has impacted costs

COVID-19 has undoubtedly impacted the building process. From shipping delays to material shortages and ever-changing exchange rates, nearly every facet of the building process has been affected.

This is because travel and work restrictions have impacted the supply chain. This means that worker productivity is low, a fact that directly impacts supply. Without supply, materials that are in circulation rise in price. 

These kinds of shortages unfortunately don’t get fixed overnight. For those looking to build a home in the near future, COVID-19 related impacts will likely see you paying more for materials and labour than in years gone by. 

It is also worth noting that the Australian government’s HomeBuilder scheme has also impacted building costs and project timeframes. With so many project approvals and a shortage of labour, it is likely that builders will charge more and require longer timeframes.

Average cost of building within Australia 

With this in mind, it isn’t hard to see why housing construction costs are rising across all major Australian cities. For example, an estimated low end cost per square metre for a new home in Adelaide is now $1,580 while the estimated high end cost is $3,450. 

In Brisbane, these figures are $1,800 and $4,000 respectively while in Canberra, home builders can expect to pay $1,700 on the low end of the scale and $3,400 on the high end of the scale. 

Meanwhile, in Darwin the average low end cost is $1,800 and the high end cost is $2,800. Whereas in a major city like Melbourne, you can expect to pay $1,720 on the low end and $3,300 on the high end. 

In Perth, the estimated low end cost per square metre is $1,400 compared to a high end cost of $2,700. Unsurprisingly, in Australia’s most populous city, Sydney, these costs sit at $1,780 and $5,100. 

Building a 3 or 4 bedroom house

While location plays a large role in determining the overall cost of the build, there are also other differences to consider. For example, a bigger property is simply going to cost more to build. 

The average cost to build a 3 bedroom house in Australia starts at $268,000. However, it is worth mentioning that this cost will increase depending on the storeys of the home and the materials used such as weatherboard vs. brick veneer

Meanwhile, the average cost to build a 4 bedroom home starts at $481,268. This figure is subject to change depending on whether your home is multi or single level and if it is constructed with a weatherboard or brick veneer facade. 

Factors that have a major effect on building a house

When building a house, many different factors will work together to determine the overall cost of your property. Taking into account these different factors will help you craft a realistic budget. 


Some say that land has the most impact on the overall cost of your home. This is because there are many different facets to land. For example, in terms of land, you are paying for the location of the home, whether it’s in the country or on the waterfront. 

However, the makeup of the land will also influence cost. This is due to factors like soil compatibility tests, sloping or narrow blocks and if the land needs to be cleared of trees or bush. 

Height / size

When it comes to height, this is in reference to building a one or two storey home. Two storey homes will generally cost more as there is more involved in the build. For example, a two storey home will also need another floor system and an internal staircase. 


The materials you use to build your own home will also influence the overall cost of your build. For example, if you decide to go with top of the line inclusions for the frame and truss, windows, roof, guttering and cladding, you will pay more upfront. 


Hiring trades will also contribute to the overall cost of building a home. Some builds may require builders, contractors, architects, electricians and plumbers. However, this expertise will come at a cost. This cost can be estimated before the build through quotes. 

Consider kit homes

Building a home can cost a lot of money. Rather than compromising on your dream plans in order to save money, consider buying a kit home. Considerably more cost effective than building a home, kit homes are also completely customisable. 

While the cost of a kit home can be affected by things like permits and labour and material costs, the starting cost for a 3 bedroom kit home is $65,205. A four-bedroom kit home starts at $67,514 while the cost of a five bedroom kit home begins at $91,155. 

Start designing today

When building a house, the costs can seemingly increase overnight. These rising costs, be it land and material prices or even labour costs, can end up making building a home quite a costly endeavour. 

Rather than compromising on your vision, look to minimise costs. A great way to minimise costs and still plan your dream home is by building a kit home with Kitome. Find inspiration in our design brochure or sit down with our design team to start your journey today.

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