- Introduction
The COVID-19 pandemic dramatically reshaped the housing and renovation market in Australia. A case study by realestate.com.au highlights how even simple home improvement projects, such as a bathroom renovation, have nearly doubled in cost since 2020.
- Case Study Example
Homeowners: Georgia and Peter Wallace
Project: Bathroom renovation
Pre-pandemic cost: ~$30,000–$35,000
Post-pandemic cost: ~$60,000+
Observation: What was once a mid-range project is now financially comparable to a premium renovation.
- Key Factors Driving the Cost Increase
a. Labor and Material Costs
Pandemic-driven supply chain disruptions increased prices for tiles, fixtures, timber, and other essentials.
Skilled tradespeople are in short supply, further pushing up labor costs.
b. Consumer Behavior Shift
Many Australians redirected travel savings and government stimulus into improving their homes.
This created an unprecedented surge in renovation demand.
c. Industry-Wide Data
Australians spent $54 billion on renovations in the past year, about $5 billion more than pre-pandemic levels (Housing Industry Association).
d. Longer Project Timelines
Builders are now often booked 6–12 months in advance, delaying projects and increasing holding costs for homeowners.
- Market Impact
Category Pre-Pandemic Post-Pandemic
Bathroom Reno Cost $30k–$35k $60k+
Average Cost Increase — ~40% higher across most renos
Total Market Spending ~$49B annually ~$54B annually
Wait Time for Builders 2–3 months typical 6–12 months common
- Broader Insights
Renovation costs have stabilized at higher levels rather than dropping back post-pandemic.
Homeowners are investing in renovations instead of selling, partly due to high property prices and limited housing supply.
Even “minor” projects require more careful budgeting and planning than in previous years.
- Conclusion
The Wallaces’ bathroom renovation illustrates a wider market reality: renovations now cost significantly more and take longer to complete. With Australians collectively spending billions extra on home upgrades, the renovation sector remains strong—but homeowners must adapt to the “new normal” of higher budgets, longer waits, and tougher trade availability.