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Expert say prices could decline in areas that were severely affected during the recent floods. Source: AAP Image/Dan Himbrechts

A housing boom, a shortage of labour, and inflated prices for building materials have pushed some companies to the brink, but experts say there is little that can be done except weather the storm.

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Published 10 July 2022 12:18pm

By Claire Slattery

Presented by Ricky Kusumo

Source: SBS

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A housing boom, a shortage of labour, and inflated prices for building materials have pushed some companies to the brink, but experts say there is little that can be done except weather the storm.

Langford Jones is one of many high-profile building companies to go bankrupt this year. The most famous of these is construction giant Probuild, which went into administration in February. But a combination of factors has also left many small home builders on the brink of bankruptcy.

Data from credit agency Equifax showed construction bankruptcies increased more than 30 percent in the 12 months to May.

The construction sector share of those figures has grown and now represents 28 per cent of all bankruptcies in Australia. But while these numbers may sound dire, Scott Mason of Equifax says they actually represent a correction to pre-pandemic levels.