National builder calls for greater scrutiny around price gouging as surging prices hit building products

Australia's building industry is being squeezed from all sides, with fuel price volatility now driving rapid and unpredictable cost increases across projects, supply chains and labour.
 

David Reid Homes Group is warning the sector is facing mounting pressure, with Managing Director Matt Jackson saying costs are now shifting so quickly that builders as well as many other industries, are struggling to keep pace.
 

"Costs are changing by the day," Jackson said.
 

"This is no longer a slow increase. It's constant movement and it is putting enormous pressure on builders trying to deliver projects responsibly."
 

Fuel shock rippling through construction
 

Jackson said the building industry, like many sectors, is being heavily impacted by rising fuel costs, with flow-on effects across materials, transport and trades.
 

"Fuel touches everything in construction," he said.
 

"It impacts deliveries, logistics, product costs, site visits and every trade getting to and from jobs."
 

He said the result is a compounding cost burden that many are finding difficult to navigate.
 

"You're not just dealing with one cost increase. You're dealing with multiple layers of cost increases hitting at once."
 

Young tradies also hit hard
 

Jackson said apprentices and young tradespeople are among the most exposed, with many travelling long distances daily to get to worksites.
 

"They're the ones driving across cities, across regions, just to get to work," he said.
 

"They don't have the financial buffer, and they're being hit the hardest."

He warned the pressure on younger workers could have long-term implications for the industry.
 

"If we don't support young tradies, we risk losing the next generation of skilled workers."
 

Builders under pressure to absorb rising costs
 

Jackson said reputable builders are increasingly being forced to absorb rising costs to protect clients, putting pressure on margins.
 

"There are a lot of good, honest builders doing the right thing, trying to deliver projects at agreed prices but when costs keep shifting, that becomes incredibly difficult," he said.
 

Call for action on price gouging
 

Jackson said there needs to be greater scrutiny across the supply chain to ensure cost increases are justified and not driven by opportunistic pricing.
 

"If the government is serious about cost-of-living pressures, then it needs to look closely at what's happening across building and supply markets," he said.
 

"There has to be accountability. Price gouging needs to be addressed and stopped."
 

He said unchecked cost increases ultimately flow through to homeowners.
 

"When suppliers increase prices without transparency, it doesn't just hurt builders, it pushes up the cost of housing for everyday Australians. This is an issue across many industries at the moment."
 

Systems critical in a volatile market
 

Under its new leadership, David Reid Homes is rolling out upgraded systems designed to help its network better track, manage and respond to cost fluctuations.
 

Jackson said stronger systems are now essential, not optional.
 

"In this environment, you need real-time visibility on costs, timelines and supplier pricing," he said.
 

"That's how you protect your business and your clients."
 

A tipping point for the industry
 

Jackson said the combination of rising fuel costs, supply pressures and labour challenges is creating a critical moment for many sectors across the country.
 

"This is a tipping point," he said.
 

"The businesses that can manage costs and operate efficiently will survive. The rest will struggle. However, in the current environment, more needs to be done to ensure businesses do not engage in opportunistic gouging because it harms all of us in some way. The flow on effects are significant."

About David Reid Homes Group
 

David Reid Homes Group is a boutique custom home building franchise specialising in architecturally designed, high-end residential homes across Australia and New Zealand.
 

With more than 17 years of history, the brand is known for delivering premium, design-led homes tailored to individual lifestyles, typically in the $1 million to $2 million build range.
 

The business operates through a network of experienced builders who partner with the brand to transition into the premium custom home market, supported by systems, marketing and supplier relationships with high-end product brands.
 

Following new ownership and leadership under Managing Director Matt Jackson, the business is executing a structured growth strategy focused on modernisation, performance and national expansion.
 

https://davidreidhomes.com.au/
https://franchise.davidreidhomes.com.au/