David Bonaddio, Real Estate Reporter
First published 26 Oct 2026, 5:00am
Melbourne tradies are competing harder for work as new HIA figures reveal labour prices have fallen 3.1 per cent across the city in a year.
A Melbourne builder has negotiated a $100,000 subcontractor quote down to $50,000 as construction labour prices fall across the city.
New Housing Industry Association figures show trade charges fell 3.1 per cent across Melbourne in the year to September, while regional Victoria recorded an 18.1 per cent surge.
The HIA’s September quarter Trades Report also reveals a sharp reversal in skilled worker availability, with Melbourne approaching equilibrium as regional shortages worsen.
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Melbourne’s trades availability index improved from -0.45 in June to -0.06 in September, while regional Victoria deteriorated from -0.12 to -0.54.
Negative readings indicate a shortage of skilled workers.
Nationally, trade prices rose 6.6 per cent in the year to September, their fastest increase in four years.
New-home sales fell 17.5 per cent between the June and September quarters, but the industry’s existing construction pipeline is expected to sustain demand for trades.
The HIA warned weaker sales were unlikely to materially ease national shortages until the second half of 2027, with another 83,000 skilled workers needed to meet Australia’s housing requirements.
HIA senior economist Tom Devitt warned Australia’s skilled trades shortage could persist into the second half of 2027, despite falling new-home sales. Picture: Contributed
Melbourne builder and electrician Mitch Pryor said subcontractors were increasingly competing for jobs as domestic and commercial building activity slowed.
“A lot of subcontractors are looking for work,” Mr Pryor said.
He said the unusually large reduction negotiated on his recent project was an anomaly, but reflected growing competition among businesses trying to keep their workers employed.
Some subcontractors were prepared to accept jobs without making a profit, provided they could cover their employees’ wages.
Mr Pryor said securing skilled workers had become noticeably easier, allowing projects to progress without the delays that previously plagued builders.
“I’ve found it really easy to get trades this year,” he said.
Melbourne builder and electrician Mitch Pryor negotiated a $100,000 subcontractor quote down to $50,000 as some businesses sacrificed profits to secure work.
His company has three projects under way, including a large home that began construction in late May and is expected to be completed before Christmas.
Bad weather had caused more disruption than worker shortages, while fuel levies had added hundreds rather than thousands of dollars to some jobs.
However, Mr Pryor said electricians remained in demand, with major data centres, rail projects and tunnelling works competing for skilled workers.
He said rising fuel, vehicle insurance and WorkCover expenses continued to squeeze trade businesses, even as competition for jobs intensified.
Melbourne builder Mitch Pryor said rising fuel, insurance and vehicle expenses were eating into tradies’ profits, even as competition forced some to lower quotes. Picture: Russell Millard Photography
For Melbourne homeowners considering renovations or extensions, Mr Pryor said the improved availability of trades was creating an opportunity to get projects under way.
“There is no better time to invest in your own property,” he said.
But he warned the favourable conditions could be short-lived, with building activity expected to increase once consumer confidence returned.
“I think it’s going to get pretty hectic pretty soon,” he said.
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