Disaster rebuild costs outpace inflation

THE cost of rebuilding homes after extreme weather is rising faster than inflation, adding pressure to housing construction and insurance premiums. Insurance Council of Australia analysis shows building costs increased about 30 per cent in the five years to March 2026, compared with 24 per cent CPI growth. Roof tiles jumped 77 per cent, while windows, plaster, steel, cement and other materials recorded sharp increases. Between 2022 and 2026, insurers received more than 400,000 disaster-related home claims, costing $11.3 billion and further stretching construction capacity.