10 Construction Statistics in Australia: 2024 Update
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Greg Iacono
- Last updated:
Note: This article’s statistics come from third-party sources and do not represent the opinions of this website.
The construction industry in Australia is massive and employs well over 1 million men and women. As Australia’s population continues to increase, the need for housing increases with it, as well as the need for private and public commercial buildings, new roads, airports, electrical grids, and the infrastructure to support all of them.
All of these needs are met by Australia’s massive construction industry. Below are the updated statistics for Australia’s construction industry for this year to provide deep insights into the industry and where it’s heading in the future.
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The 10 Construction Statistics in Australia
- The Australian construction industry is valued at $360 billion annually.
- In 2022, total construction work in Australia fell by 3.8%.
- Australia’s construction industry employs over 1,143,600 people.
- In 2022, Australia had 395,650 construction businesses.
- Australia’s construction industry has a low market share concentration, with no single business holding 5% of the market share.
- A full-house renovation in Australia costs $63,500 on average.
- The cost to design and build a turnkey warehouse in Australia is between $1,080,000 and $1,320,000.
- The Australian construction industry is recovering from the COVID-19 pandemic.
- Overall, the Australian construction industry is expected to expand by 4.7% in 2022.
- Australia will spend $15.2 billion on infrastructure works over the next 10 years.
Australia’s Construction Industry Overall
1. The Australian construction industry is valued at $360 billion annually.
(Australian Industry and Skills Committee)
Australia’s construction industry includes residential and non-residential construction projects as well as demolition, maintenance, repair, and renovation of buildings and infrastructure. The industry also encompasses a wide range of other services like surveying, project planning, interior decorating, and several others.
Annual revenues generated by Australia’s construction industry are over $360 billion annually. This revenue represents approximately 9% of Australia’s Gross Domestic Product (GDP). Over the next 5 years, the construction industry in Australia is predicted to have an Annual Growth Rate (AGR) of approximately 2.4% annually.
2. In the June quarter of 2022, total construction work in Australia fell by 3.8%.
(Australian Bureau of Statistics)
Due to a fall in new residential and non-residential construction, the Australian construction industry saw a decrease of nearly 4% during the June quarter of 2022. Compared to 2021, building construction was 4.4% lower.
Engineering construction fell 2.7%, a drop of 4.1% in the June quarter of 2021. There was also a fall of 6.8% in the new residential construction sector and a 1.1% decrease in the non-residential sector, although it still managed to be 0.6% higher than in 2021.
Australia’s Construction Industry Employment
3. Australia’s construction industry employs over 1,143,600 people.
(Back to Basics)
The construction industry in Australia, as in many other countries, is massive and employs over 1.1 million Australian workers. In total, that represents 8.7% of the total available workforce in the country. Put in another perspective, approximately 1 in 10 Australian workers are employed in one of the various jobs the construction industry creates. That makes the construction industry one of the largest employers in Australia.
4. In 2022, Australia had 395,650 construction businesses.
(IBIS World)
The number of construction businesses in Australia in 2022 was just under 396.000, which is a 1.3% increase over the previous year. Over the last 5 years, the industry has been growing at a steady rate of 1.3%. Data suggests that, over the next 5 years, Australia’s construction industry will continue to grow. This growth includes construction companies that provide road construction, general construction, residential and non-residential construction, and several others.
(IBIS World)
Most of Australia’s construction companies are small and have a single owner or partnership. No single construction company in the country has more than a 5% market share because Australia’s construction industry has such a low market share.
Average Construction Costs in Australia
6. A full-house renovation in Australia costs $63,500 on average.
(Architecture & Design)
In 2022, the average cost for a full-house renovation in Australia is $63,500. The high-end and low-end costs ranged from a low of $40,000 to a high of $300,000. The highest average price for a full house renovation was in Victoria, where the average was $71,000. The lowest was found in Western Australia, where the average cost for a full-home renovation was $54,377. That breaks down to $55 per hour, on overage, for home renovation construction services.
7. The cost to design and build a turnkey warehouse in Australia is between $1,080,000 and $1,320,000.
(Asset Building Systems Australia)
Although many factors come into play, the average cost to build a commercial warehouse in Australia in 2022 ranged between $1,080,000 and $1,320,000. Some factors determining the end price include the cost of the land where the warehouse will sit, labor costs, council fees, and the types of construction materials chosen.
One of the most significant factors affecting the price of constructing a warehouse in Australia is the cost of steel. Most construction companies use structural steel, especially for a warehouse over 60 feet (18 meters) in height.
Government Construction Statistics
8. The Australian construction industry is recovering from the COVID-19 pandemic.
(Australian Construction Industry Forum)
According to Bob Richardson, the Chair of the Australian Construction Industry Forum (ACIF), the building and construction market in the country is bouncing back after the impact made by the COVID-19 pandemic. That recovery is projected to include growth of 2.7% in 2022 and consists of a 10% growth in the construction of new housing.
The ACIF also projects that infrastructure spending will increase thanks to several broadened Commonwealth and State government infrastructure delivery plans being rolled out in 2022.
9. Overall, the Australian construction industry is expected to expand by 4.7% in 2022.
(Yahoo Finance)
Double-digit industry growth in 2021 will lead to a 4.7% construction industry expansion in 2022. According to the Australian Bureau of Statistics (ABS), this figure also reported an expectation of 3% growth starting in 2023 and continuing until at least 2026. Much of this growth is due to an increase in expenditure, which was slowed by the recent pandemic and the lockdown restrictions it caused during the second half of 2021.
10. Australia will spend $15.2 billion on infrastructure works over the next 10 years.
(Yahoo Finance)
The Australian government released its fiscal year (FY) budget in May of 2021, which is from July 2021 through June 2022. In that report, it was noted that, over the next 10 years, the federal government of Australia would add $15.2 billion (USD$11.8 billion) to the infrastructure pipeline in the country.
In December 2021, the Australian government also announced that it would add $2.3 billion (USD$1.8 billion) in funding to help Australia’s economic recovery after the recent pandemic.
Frequently Asked Questions about Australia’s Construction Industry
How long is the typical construction project in Australia?
The time it takes to complete a construction project in Australia depends on the project, its size, and several other factors. For example, from start to finish, a 1,500–2,800 square foot project typically takes 6 to 9 months. However, a larger project of 500 square feet can take as long or longer than 12 months to complete.
What are some of the typical Australian construction projects?
Construction companies in Australia are involved in a wide variety of construction projects. They include new home construction and transport construction, including airports, bridges, bus terminals, mining-related projects, energy-related projects, and several others. The construction industry is involved in retail, commercial, government, and private projects of various scopes and dimensions.
What is the average cost to construct a new, private home in Australia?
Based on figures provided by the Australian Bureau of Statistics (ABS), the average cost to construct a new home in Australia in 2022 is $473,000.
What three main factors affect the cost of building a new home in Australia?
Land prices, building materials, and the size of the home are the primary factors that affect the cost of constructing a new home in Australia.
How do you get into the construction industry in Australia?
The first prerequisite for most construction jobs is to complete grade 10 of high school. Next is typically an apprentice position or a VET (Australian Vocational Education and Training) certification. A VET certification can significantly increase your ability to land an entry-level position.
What is the percentage of men vs. women working construction jobs in Australia?
Approximately 87% of the people holding construction jobs in Australia are men.
How much does a construction worker earn annually in Australia?
Based on figures updated in November of 2022, the average construction worker in Australia earns $32.28 per hour, which equals $64,560 per year.
Which Australian cities pay the highest wages for construction workers?
The highest-paying cities in Australia for construction workers are Sydney, Glendenning, Penrith, Parramatta, and Liverpool. Of those 5, Glendenning was the highest, with an average income of $55.67 per hour.
Final Thoughts
Australia’s construction industry is one of the biggest and most robust in the world, employing over 1.14 million people and contributing nearly 9% to Australia’s GDP. The industry is well on its way to recovering from the COVID-19 pandemic, and experts are predicting a high level of growth for the next several years.
Featured Image Credit By: Troy Mortier, Unsplash
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