Key Facts

  • Peter Fox and Izy Nelson-Will are a young couple who have been renovating their home in the Kāpiti Coast since 2018.
  • Their recent renovation project included elements such as an extension, a refurbished laundry, bathroom, and kitchen, costing up to $140,000 so far.
  • The couple have observed increasing material costs, which have risen significantly due to the Covid-19 pandemic.
  • Renovation specialists confirm these increasing costs, citing supply shortages and high demand for skilled trade labour as reasons.
  • Though some experts note a stabilisation of renovation costs in 2023, they advise that prices are never likely to return to previous lows, with further price increases expected.

Article Summary

The rising cost of home renovations, driven by supply shortages and increased demand for tradespeople, has been felt keenly by home-owners in New Zealand. Peter Fox and Izy Nelson-Will, a couple in the Kāpiti Coast, have been experiencing this first-hand. With their home renovation project spanning from 2018 till now, they’ve observed the escalating prices of materials and services. Their most recent renovation, including an extension, and refreshed laundry, bathroom, and kitchen, has so far cost them around $140,000.

According to Fox and Nelson-Will, prices of construction materials have been increasing rapidly, with suppliers often informing them of price escalation on a fortnightly to monthly basis. Besides saving costs by carrying out some DIY work, the couple also tries to reuse and repurpose building materials as much as possible. Despite these measures, they’ve seen a phenomenal rise in renovation expenses.

What the couple has experienced is not out of line with the renovations sector at large. Jen Jones from Nine Yards Consulting confirmed that costs have risen since 2021 due to a shortage of supplies and higher demand for tradespeople. Similarly, Rachel Radford from BuildersCrack noted that while costs are seemingly stabilising in 2023, large-scale renovation projects are being replaced by smaller ones, due to financial cautiousness amongst households.

With the expectation of further price increases in the future, particularly for products like wallboards and plasterboards, prospective renovators are advised to brace for potentially higher costs. The sentiment among experts is that while prices may pause at certain points, they are unlikely to revert to their previous levels.

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