More People Wanting to Live Outside Sydney Sparks Building Boom

Construction worker creating a house

Home construction on the outskirts of Sydney can barely keep up with increasing demand, as more people want to relocate outside the city where properties are more affordable.

This building boom not only benefits businesses that provide construction and hardware supplies but also helped in uplifting a declining trend in building permits.

Higher Prices

In September 2017, approvals reached a total of 9,929 permits that represented an 18-month high for the industry. Approvals for private home construction also increased for the seventh month in a row in September.

These permits included those from roughly 230,000 immigrants that constructed their own houses. For buyers, home prices in outer Sydney may soon be expensive for their taste. The high demand for homes in the region has propelled the medial values for residential lots to $470,000 in October.

Aside from high prices, the building boom also posed another challenge in terms of hiring skilled workers in the construction industry.

Labour Shortage

James Logue, Sydney-based Fairmont Homes’ housing manager, said that a lack of bricklayers had led homebuilders to consider other materials instead of bricks. A report from the Australian Bureau of Statistics (ABS) showed that the shortage of workers not just happens in Sydney, but also elsewhere in Australia.

The 2017 Hays Global Skills Index revealed that there is a wider skills gap between what job applicants have and what employers look for potential workers.

The Sydney Housing Supply Forecasts showed that 180,000 new homes would be built in the city over the next five years, which highlights a need to fill different job vacancies, including site managers, project engineers and contract administrators.


The home construction boom in Sydney bodes well for businesses that supply materials, yet it poses challenges for builders in finding the right talent as demand is expected to continue in the future.