A recent report based on consumer research by Equifax has revealed that the construction demand is growing but is still impacted by a lack of trust.

Half of Australians (51%) plan to purchase, renovate or build a home or investment property in the next five years, up from 45% of Australians in 2023. Despite this, these ambitions are constrained by concerns about building quality, builder solvency, defects and delays.

“After housing affordability, the biggest barriers to buying, building or renovating a property in Australia all relate to people’s perception of the construction industry. The challenges in the construction industry are impacting consumer confidence,” Equifax head of product and rating services Brad Walters says.

Nearly half of Australians (41%) surveyed reported difficulties in finding qualified builders and dealing with delays in the building process and over two-thirds of Australians (67%) worried the high demand for housing, combined with limited supply, will result in poorly built homes.

This anxiety is even more acute among those intending to purchase, construct or remodel properties in the next five years (73%). In addition, 85% of those considering construction are concerned about building quality and potential defects with eight in ten (80%) uneasy about insolvencies in the industry.

Despite negative perceptions of the sector, numbers are also showing Australians still value trust in the building industry.

Most Australians have reported a desire for independent evaluations of builders and developers before buying or renovating homes. This is even stronger among those planning to make property purchases in the near future.

Seventy-two percent of Australians who intend to buy, build or renovate a property in the next five years would also be willing to pay to ensure working with trustworthy property developers or building professionals to get the job done.

“The good news is, we know many capable, reliable and resilient industry players dedicated to doing the right thing. The opportunity is there to rebuild consumer trust and for trustworthy building professionals to benefit from improved market confidence,” Brad says.

“This growth is encouraging because Australians are becoming more diligent and learning to better identify credible construction and building professionals.”