Press Coverage

Tradie Price Hikes: How ServiceSeeking Is Navigating the Surge

Written by Bettina Diaz | Sep 16, 2024 12:00:47 PM

Over the past year, Australian homeowners have been hit with steep price hikes across a range of trades, with some tradies increasing their rates by more than 50%. According to data from ServiceSeeking.com.au, this surge in fees has caused a ripple effect across the construction and home improvement industries, putting a financial strain on many Aussies.

Oliver Pennington, co-founder of ServiceSeeking.com.au, highlighted the ongoing challenges, noting that the supply of skilled tradies simply hasn’t kept up with the overwhelming demand. “I don’t think we’ve ever seen such a big increase in costs across so many trades,” Pennington said. “It’s gotten to the point where just getting a quote from a tradie can be a challenge.”

Why Are Tradie Prices Skyrocketing?

Several factors have contributed to these unprecedented price hikes. Many trades have experienced a significant backlog of work, stemming from delays caused by the COVID-19 lockdowns. Once restrictions were lifted in 2022, there was a surge in renovations and construction projects, which has continued into 2024. As a result, tradies have been swamped with jobs, creating bottlenecks and pushing up rates.

“During Covid, a lot of work was postponed, and then, as people emerged from lockdown, there was an explosion of renovation projects. That combination put immense pressure on the market,” explained Pennington.

In some cases, tradies have increased their rates by more than ten times the current inflation rate. Arborists, for example, saw the biggest jump, with hourly rates climbing a staggering 56.9%, from an average of $60 per hour in 2022/23 to over $93 per hour in 2023/24. Labourers, a key workforce for builders, also raised their rates by 35.7%, while landscapers, demolition companies, and builders followed suit with price hikes of 25.5%, 20.7%, and 20.6%, respectively.

The Role of ServiceSeeking.com.au

As one of Australia’s leading platforms connecting homeowners with tradies, ServiceSeeking.com.au has witnessed these price changes firsthand. Homeowners have increasingly turned to the platform to navigate this rapidly shifting landscape. By offering competitive quotes from multiple tradies, ServiceSeeking.com.au helps users find the best deals, even in a challenging market.

Pennington noted that while the price hikes have deterred some homeowners from moving forward with projects, others remain undeterred. “There’s still a large group of people with enough equity in their homes to push ahead with renovations, despite the rising costs,” he said.

ServiceSeeking.com.au has played a crucial role in ensuring that even with these price hikes, homeowners can access a variety of options for their projects. The platform allows users to compare prices, read reviews, and connect with highly rated tradies across Australia, helping them navigate the financial challenges posed by these price surges.

What Can Homeowners Do?

With tradie rates climbing and inflation continuing to pressure household budgets, homeowners are advised to shop around for quotes, especially on large-scale projects. ServiceSeeking.com.au offers a simple solution by providing a platform where users can post their jobs and receive multiple quotes from tradies in their area, allowing them to compare rates and make informed decisions.

Despite the soaring costs, ServiceSeeking.com.au remains committed to helping Aussies find the right professionals for their projects, ensuring that homeowners can continue to improve their homes without breaking the bank.

You can read the original article here: https://www.realestate.com.au/news/price-gouging-tradies-hike-charges-by-10x-inflation/