Key survey findings:
- Only one in three (32%) Australians have a positive perception of the construction industry.
- 40% of Australians say their perception of the construction industry has gotten worse over the past year, and 20% of Australians believe that the industry will be worse off over the next 12 months.
- Nine in ten (90%) Australians agree that it's important to have trust and confidence in building and construction professionals.
- 72% of Australians who intend to buy, build or renovate a property in the next five years say they would be willing to pay to get independent assurance of working with trustworthy property developers or building professionals.
Sydney, Australia – 29 October 2024 – Consumer trust in the construction sector continues to fall, with two-fifths (40%) of Aussies saying their perception of the industry has gotten worse over the past 12 months.
According to consumer research launched today from Equifax, the global data, analytics and technology company, half of Australians (51%) plan to purchase, renovate, or build a home or investment property in the next five years - up from 45% of Australians in 2023. However, these ambitions are constrained by concerns around building quality, builder solvency, defects and delays.
“After housing affordability, the biggest barriers to buying, building or renovating a property in Australia all relate to people’s perception of the construction industry,” said Brad Walters, Head of Product and Rating Services at Equifax. “Four in ten (41%) Australians identified a shortage of reliable and qualified builders as a key barrier to buying, building or renovating a property, and the same number raised concerns around construction delays and build times (41%).”
Headline-grabbing issues are also playing on the minds of consumers when they consider the construction sector. A massive 85% of Australians surveyed are concerned about building quality and potential defects, and eight in ten (80%) are concerned about insolvencies in the construction industry.
“The challenges facing the construction industry are having a marked impact on consumer confidence. Two-thirds (67%) of Australians are concerned that the low level of supply, coupled with high demand, will negatively impact building quality in Australia. These worries are even more pronounced among those with property intentions, with 73% of people looking to buy, build or renovate in the next five years voicing these concerns,” said Walters.
The negative perception of the sector is becoming hard to shift. Almost half (47%) of Australians doubt anything will change over the coming 12 months when it comes to the construction industry, and 20% predict the sector will be worse off.
“The good news is, we know there are many capable, reliable and resilient industry players that are dedicated to doing the right thing. The opportunity is there to rebuild consumer trust, and for trustworthy building professionals to benefit from improved market confidence,” Walters added.
Trust is a highly prized asset
Despite their ongoing concerns, nine in ten (90%) Australians agree that it's important to have trust and confidence in building and construction professionals. As a result, three in four (76%) say they’re likely to require independent due diligence and ratings of a property developer, contractor, or building professional when buying (69%) and/or building/renovating (70%) a home or investment property. This rises to 92% for those with plans to buy, build or renovate a property in the next five years.
Further, 72% of Australians who intend to buy, build or renovate a property in the next five years would be willing to pay to ensure they’re working with trustworthy property developers or building professionals to get the job done.
“The lack of consumer confidence in the construction industry, combined with increasing interest in building, buying or renovating, creates a catch-22 for the industry. Consumers have big property plans but don’t know who they can trust to bring these ambitions to life,” said Walters.
“Resources like the Independent Construction Industry Rating Tool (iCIRT) can help restore some much needed trust and confidence to the industry, and provide consumers with greater peace of mind when making big property decisions.”
Already, independent ratings tools are helping move the needle for the construction industry. Among Australians who are aware of iCIRT, 69% say their perception towards the construction industry in Australia has improved over the past 12 months - compared to only 18% overall.
“We’ve seen a marked increase in the awareness of tools like iCIRT over the past 12 months. Three in ten Australians (31%) say they are aware that there’s an independent rating tool available to help consumers find trustworthy building professionals, up from 24% this time last year. This increases to over two-fifths (44%) of those who intend to buy, build or renovate home or investment property in the next 5 years,” said Walters.
“This growth is so encouraging, because it means that Australians are becoming more diligent and learning how to better identify credible construction and building professionals. And for reliable industry players, the increased awareness of iCIRT provides an opportunity to differentiate themselves in the market, drive improved public trust and restore market confidence - vital ingredients for the industry’s long-term viability.”
iCIRT was developed by Equifax in close consultation with the government, industry and market. The iCIRT rating system gives developers, builders, building and design practitioners, certifiers, trade contractors and consultants a rating, and those able to attain at least three gold stars are able to be recognised on the public-facing register of trustworthy building professionals.
To learn more about iCIRT, visit https://www.icirt.com/
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ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit www.equifax.com.au or follow the company’s news on LinkedIn.
ABOUT THE RESEARCH
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1036 Australian 18+ adults. Fieldwork was undertaken between 22 August – 26 August 2024. The survey was carried out online. The figures have been weighted and are representative of all Australian adults (aged 18+).
