In Australia, the ongoing housing crisis has sparked a heated discussion, notably after real estate coach Tom Panos attributed the escalating issue to inflated wages among tradespeople and developers’ reluctance to build. On March 12, 2025, in a series of Instagram videos, Panos asserted, "Let’s be clear—it’s not a housing problem, it’s a construction problem." He emphasized how skyrocketing costs and dwindling supply are progressively sidelining potential homebuyers from the market.
Panos highlighted a staggering 40-50% surge in building costs from a few years ago, indicating that issues leading to this crisis aren't confined to the homes themselves. With approval delays averaging around 40%, he laid the groundwork for what he views as a grim future for housing in the nation. "No developer is rushing to sign a contract," he stated, noting that land and resale values no longer substantiate building expenses.
The Property Council of Australia corroborated Panos’s assessments by reporting a 30% increase in construction costs relative to pre-COVID levels. As he put it, "A bricklayer’s expecting $900 a day—that’s the norm now." This reflects a broader trend where many tradespeople have chosen to work independently to secure better pay, which in turn adds to the financial burden faced by developers. The labor shortage facing developers, compounded with slim profit margins, has had an adverse effect on new housing projects.
Panos acknowledged the recent legislative changes in New South Wales that have reduced red tape for building duplexes on smaller lots, lowering the required frontages and block sizes. Still, he argued that the core issue remains the lack of available workers. "It’s easier now, but that’s not the issue—finding people to do the work," he stressed.
To illustrate his concerns further, Panos utilized a table he created with the help of ChatGPT. He estimated that Australian construction costs range from $14,000 to $18,794 per square meter, significantly overshadowing lower costs reported in the UK, USA, and Canada, which fall between $5,480 and $6,100. "A brickie’s on a grand a day," he reiterated, adding that when risks and delays are factored in, developers are often reluctant to invest.
His comments ignited considerable backlash from the tradespeople community online. Many expressed outrage at Panos’s assertions. One commented, "You charge one percent per house sale—more than $900 daily. What makes you special?" Another added, "Good bricklayers earn every cent for back-breaking work that lasts 100 years," indicating frustration with the blame placed on their industry.
This discourse has unearthed ongoing tensions amid Australia's construction landscape, illuminating layered complexities involving rising costs, labor demands, and a strained housing market. Another voice within the tradespeople community pointed out, "Bureaucracy, government fees, and taxes are the real problem across every sector," emphasizing that the crisis extends beyond just tradies and developers.
Panos’s narrative has provoked a multifaceted debate. As he passionately pointed fingers at tradespeople and developers, asserting their roles in exacerbating the housing crisis, it becomes clear that the problem is laden with nuances that touch upon various systemic factors, including economic, bureaucratic, and market pressures. With the backdrop of soaring costs and ongoing approval delays, it appears that both the industry professionals and the government may need to explore solutions collaboratively to alleviate the burdens placed on aspiring homeowners in Australia.
As this debate continues to unfold, policymakers are urged to delve deeper into the issues raised, balancing the needs of tradespeople, developers, and the broader community in a quest for sustainable pathways forward.
