Rising fuel prices linked to conflict in the Middle East are expected to drive sharp increases across the construction sector, with experts warning the full impact is not yet understood.
AUT professor John Tookey told state-funded media reduced oil production and energy-intensive manufacturing processes will push up costs for key materials like steel, aluminium, bricks and plastics, potentially lifting construction costs by 25 percent or more, with further increases possible.
“Oil production is down through damage to wells and so forth by 22 percent or more – that is production capacity that is out for two or three years or more. This is not going to go away soon. Construction costs are going to spike shortly, maybe as much as 25 percent or more and will stay that way or escalate further,” said Tookey.
“This is going to hammer the construction market, housing, infrastructure everything. At the same time that interest rates are going to rise – where construction totally relies on borrowed money.”
Industry leaders report early signs of strain, including higher shipping, freight and raw material costs, with some suppliers already signalling price hikes.
However, property economist Kelvin Davidson suggests the overall effect on new home builds may be more moderate, noting labour costs make up a significant share and are unlikely to rise sharply in a weaker economy.
While material inflation is expected, subdued housing demand could limit how much builders can pass on, potentially slowing construction activity overall.
Image credit: Ricardo Gomez Angel
Remeber folks, we are all suffering under this idiotic war just so America can give Iranians “rights and freedoms”, like OnlyFans, gay porn and rigged elections.
We are all suffering under this idiotic war because America is supporting Israel’s war mongering, genocide and war crimes. Israel is the centre and cause of the conflict.
This is why NZ needs to restore, modernise and update the Marsden Point Refinery, and begin drilling at 100% capacity so that NZ will have energy independence, and can operate in several scenarios without interruptions to the economy, food production, and commerce that we are seeing via naval blockades from other nations as being seen currently in the Strait of Hormuz.
Here’s an example of global oil instability, deliberately caused by a narcissistic psychopath and his sycophant Jew$ that also surround him-
https://halturnerradioshow.com/index.php/component/content/article/reports-coming-in-oil-in-singapore-210-per-barrel-today?catid=17&Itemid=101
WHY???
Here’s the answer-
Trump became a J3wi$h convert in 2017…under pressure to conform to what the J3w$ and israel demands!
https://www.youtube.com/watch?v=uUpsxBmZVC4&t=8s
https://rumble.com/v71w7gy-occupied-2024-stew-peters-documentary.html?e9s=src_v1_s%2Csrc_v1_s_o&sci=434d261f-fa98-4251-96df-95b03d82507d
Here’s what the J3w$ are trying to install and implement on a global basis…and this is when the slaughter and slavery of non-J3wi$h Gentiles & Goyim begins.
https://rumble.com/v76c79a-israeli-spyware-firm-builds-jewish-secret-police-to-arrest-floridians-for-w.html?e9s=src_v1_s%2Csrc_v1_s_o&sci=c0d3a701-c8e7-458e-a306-4eb18ce33ee8
U forgot their rights to full term abortions GM foods pfizer gene therapies + fake constitutional rights. yeah lets bring the iranians our freedoms.
AUT the dumbest university in NZ! Don’t listen