The increase in construction costs is easing, with new figures showing growth in the past year is the lowest since 2007.

CoreLogic’s Cordell Construction Cost Index (CCCI) says costs only increased by 0.8% for the first quarter of 2024 and 2.8% in 2023.

CoreLogic Economist Kaytlin Ezzy says while growth in national construction costs are easing from the highs experienced throughout the pandemic, price levels remain elevated.

“The strong fluctuations seen in building material costs over the past few years have levelled out and are now within normal margins,” Ezzy says.

Despite the slowdown costs are still 27.6% higher than at the start of the pandemic.

Ezzy expects cost growth to remain subdued in the coming year.

“National dwelling approvals have held well below average in 2023 and are continuing to do so into 2024, helping to dampen the growth in construction costs,” she says.

Costs rose by 0.7% in the quarter in Queensland and South Australia, while New South Wales and Victoria were both up 0.9% and Western Australia was up 0.7%.