Building a House in 2025: Advice from 5J Building

5J-building-construction-workers-framing-a-roof-on-a-new-home

June 2025 has brought major changes to Australia’s building a house, with a historic 15% surge in construction costs recorded in just one quarter. But despite rising prices, industry confidence remains strong, and more Australians are still moving forward with their dream of building a home.

At 5J Building, we understand the excitement—and the pressure—that comes with building in today’s market. Based on the latest industry reports and our experience on the ground, here’s our advice for anyone preparing to build in 2025.

🔍 Understanding the Market: It’s Booming, But Uneven

According to the latest Building News report:

  • Private residential construction has made a strong comeback, with housing approvals up 7% nationwide.

  • Western Australia, South Australia, and Queensland are leading the recovery.

  • Detached house starts are expected to rise 3.7% to over 111,000 this year.

  • But a critical skills shortage continues to challenge timelines and labour costs.

What does this mean for you? It’s more important than ever to plan ahead, build smart, and read the fine print.

💡 5J Building’s Tips for Reducing Building Costs

1. Keep Your Design Simple

A well-designed but simple home can save you thousands. Avoid overly complex rooflines, non-standard layouts, and custom structural features unless absolutely necessary. Clean designs = lower labour and material costs.

2. Consider Off-Site and Modular Construction

Modular homes and prefabricated elements can significantly reduce both build time and expenses. These methods also reduce on-site waste and offer better weather resilience.

3. Choose Cost-Effective Materials

Look for locally sourced materials that offer durability and performance without the premium price tag. Buying in bulk can help—but only if you have proper storage and planning in place.

4. Plan Every Detail Before You Start

One of the biggest cost traps? Making changes during the build. These modifications delay timelines, require rework, and come with a hefty price tag. Lock in your plans early and stick to them.

⚠️ Pitfalls to Watch Out For

At 5J Building, we often see these issues catch people out:

  • Underestimating site costs: Excavation, soil testing, and site access can add up quickly—budget for them early.

  • Hidden costs: Council fees, utility connections, and permits are often overlooked.

  • Skipping energy efficiency: Skimping on insulation, glazing, or ventilation systems may save upfront—but it adds cost to your power bills later.

  • Labour delays: With the current skills shortage, be realistic about build timelines and contractor availability.

📘 Smart Homeowners Are Reading More

The rise in building costs has changed how homeowners prepare. Many are now:

  • Reading cost-saving blogs and industry guides.

  • Using planning tools and checklists from the Australian Building Institute.

  • Watching builder-led video series on pitfalls and regulations.

  • Following case studies like Jiri Lev’s low-cost, self-designed home model, which shows it’s still possible to build for under $150K with the right approach.

At 5J Building, we strongly encourage anyone looking to build to read broadly, ask questions, and stay informed.

💬 Final Advice from 5J Building

Building in 2025 is not impossible—it’s just different. With rising costs, tighter labour markets, and changing regulations, knowledge is your most powerful tool.

If you’re thinking of building:

  • Do your homework.

  • Talk to professionals early.

  • Have a solid contingency plan (we recommend at least 10% of your total budget).

The more informed you are, the better your results will be. And remember, your builder should be a partner, not just a service provider.

Reach out to 5J Building for transparent advice, efficient designs, and a smooth building experience from start to finish.

Need help? Call 5J Building Group on (03) 9886 3731 or request an Instant Quote Online.