The construction sector’s reputation in Australia has strengthened significantly over the past year, with positive perceptions rising to 44 per cent of Australians, up from 32 per cent in 2024.
However, alongside this optimism, concerns about construction quality and financial stability persist, driven by pressures from housing supply targets, according to the latest consumer research released by Equifax.
The iCIRT consumer research reveals that a growing number of Australians expect their view of the construction industry to improve, with 32 per cent anticipating better perceptions in the next 12 months — up from 25 per cent in 2024.
Brad Walters, General Manager, Commercial at Equifax, commented: “It’s clear that many Australians are starting to feel more confident in the state of the property market and the construction industry more broadly.
“Some of this optimism can in part be attributed to recent interest rate cuts: the iCIRT data shows that although housing affordability remains the most common barrier to buying, building or renovating, the number of consumers citing this as their biggest hurdle has dropped to 48 per cent, down from 57 per cent in 2024.”
Despite this positive shift, challenges remain. Nearly 90 per cent of Australians worry builders may cut corners to reduce costs, and 89 per cent are concerned about delivery speed compromises.
Additionally, 78 per cent express concern about construction insolvencies, with 51 per cent more apprehensive than last year that builders might fail before completing projects.
Confidence in the quality and durability of new apartment buildings or build-to-rent developments is low, with half the consumers expressing little or no trust.
Walters highlighted unsettling industry trends: “On the other side of the coin, however, is the fact that construction insolvencies remain at historically high levels.
“The construction sector accounted for the highest proportion of insolvencies in July, with 341 insolvencies reported — an increase of 4 per cent from the same month the previous year, and more than twice as high as pre-pandemic levels.”
He added: “Concerningly, our research reveals that 53 per cent of Australians believe there aren’t enough protections in place to safeguard consumers from construction companies going bust or delivering poor projects.
“Given the need for more housing and the government’s focus on increasing supply, it’s paramount that Australians can rely on construction industry professionals to deliver trustworthy built assets.”
The research also indicates a strong public appetite for better consumer protection tools.
An overwhelming 89 per cent agree that an independent tool, similar to safety ratings for cars or appliances, should be available to compare construction professionals.
Furthermore, 90 per cent support the creation of a register of independently rated, trustworthy construction companies.
Walters observed: “The good news is that there are tools available to help consumers make big property decisions with greater confidence, like the Independent Construction Industry Rating Tool (iCIRT).
“We’ve seen a marked increase in the awareness of iCIRT over the past 12 months.
“A fifth (20 per cent) of Australians say they are aware of iCIRT — that’s approximately 4.3 million adults, and a significant jump from 12 per cent in 2024.
“In addition, a further one in six (17 per cent) consumers say they’re aware that there’s an independent rating tool available to help consumers find trustworthy building professionals.”
He emphasised the benefit of engagement for construction professionals: “More than six in 10 (63 per cent) of those buying a home or investment property would be willing to pay a premium to ensure the property developer, contractor, or building professional had an independent trust rating.
“On average, Australians who are willing to pay a price premium say they would pay an additional 8.2 per cent if they were confident that the property developer, contractor, or building professional had a trustworthy reputation compared to those with an unknown status.”
Reflecting on consumer values, Walters said: “The construction industry has an exciting opportunity to ensure the emerging positive perception of the sector continues to grow.
“Interestingly, nearly six in 10 (58 per cent) Australians believe a builder or developer’s reputation is more important than the floor plan or interior fittings of a prospective home — reinforcing the value consumers place on trust.”
He concluded: “Australians want to feel informed and empowered when making property decisions. By engaging with tools like iCIRT, construction professionals can showcase their trustworthy status, build stronger relationships with Australians looking to build, buy or renovate, and help enhance the reputation of the entire industry.”
Developed by Equifax in close consultation with government, industry, and market stakeholders, the iCIRT rating system assesses developers, builders, building and design practitioners, certifiers, trade contractors, and consultants.
Those attaining at least three gold stars qualify for public recognition on a register of trustworthy building professionals, contributing to greater transparency and consumer confidence in the construction marketplace.
