Opinion Editorial, Published in The West Australian Newspaper, Wednesday 22 April 2026
Terms like ‘unprecedented’ and ‘global uncertainty’ became part of everyday language during the pandemic.
Just as the development and construction industry was finding its feet again in some semblance of normality, we find ourselves again amid a global crisis, as conflict in the Middle East impacts fuel supplies, drives up costs and disrupts supply chains across the nation.
In WA, we are navigating the escalating effects of this situation on a housing market that has never experienced the degree of systemic undersupply than we have at present. Across all sub-markets in both established and new, both rental and for purchase, there is very little choice.
Today there is genuine concern that fuel supply shortages will add thousands to the cost of delivering a new home. Further, that supply chain and material cost increases will end up ‘baked in’, never to go back down as we saw post pandemic.
UDIA WA’s latest data shows the impact on bringing land to market including rising diesel costs directly increasing the price of earthworks and civil works, including fuel for excavators, loaders and rollers. Diesel costs are also indirectly driving up the cost of fill through haulage and placement, as well as materials such as limestone blocks, concrete, PVC pipes, roadbase and asphalt, among others.
The State Government is on the front foot, working with industry to understand the impacts and explore solutions to reduce delays and costs and minimise further pressure on housing supply and affordability.
Transparency is key to fully understand the implications for land supply. UDIA WA has gathered direct feedback from members across built-form and land development sectors to better understand how developers are managing escalating costs and market volatility.
Member feedback indicates the most immediate challenges affecting residential project planning and delivery include contractor cost escalation, supply chain disruptions and delays, increased material costs, and ongoing uncertainty impacting project timeframes.
The materials and resources most affected by the current crisis include PVC piping, fill, asphalt, civil construction inputs, and concrete and cement.
We cannot underplay the risks to our housing supply pipeline. Member feedback indicates close to half of respondents are considering delaying residential development projects due to the absence of certainty over cost. Built form projects that were borderline feasible before are firmly off the table, for now.
We are actively exploring potential government measures to help offset rising costs through the supply chain, including expanded funding support through further targeted fuel excise reductions and reduction in royalties on quarried materials, prioritising fuel supplies for civil construction, and deferring or waiving development fees and charges.
At the same time, we cannot lose focus on WA’s long-standing housing supply challenges, driven by systemic issues that have long impacted private industry’s ability to deliver diverse housing to the market.
With the common purpose of providing an adequate supply of housing for all Western Australians and a sense of urgency in our response as we had during the pandemic, we can find opportunity in this crisis. In challenging convention, together we can deliver more homes, faster.
Op Ed Contributed by UDIA WA CEO Tanya Steinbeck