‘The homes we build twice’: Repair bill for climate disasters climbing faster than inflation
An article published in The Age on August 31, 2026, discusses the growing financial burden of repairing homes damaged by climate-related disasters in Australia. It highlights that over the past four-and-a-half years, $11.3 billion has been spent on rebuilding and repairing homes affected by extreme weather, with 145,392 homes damaged in 2025 alone, nearly matching the number of new homes built that year. The Insurance Council of Australia refers to these homes as 'the homes we build twice,' emphasizing how this process competes with efforts to address the housing shortage by consuming resources like builders, materials, and labor. The article notes that construction costs have risen significantly, outpacing inflation, with specific materials like roof tiles, windows, and structural steel seeing price hikes of up to 77%. Regional areas face particularly high costs, with examples from Alice Springs and Broome. Experts attribute the rising costs to global supply chain issues and increased demand for construction due to factors like AI data centers and the 2032 Olympics.
Australia's housing crisis is facing a mounting challenge as the cost of rebuilding and repairing homes damaged by climate-related disasters continues to rise faster than inflation, according to recent reports. Between January 2022 and June 2026, insurers processed 409,094 claims related to declared catastrophes and significant weather events, resulting in an insured cost of $11.3 billion. This figure highlights the scale of damage caused by extreme weather conditions, including bushfires, floods, and storms, which have increasingly impacted residential properties across the nation. In 2025 alone, 145,392 homes were damaged by declared catastrophes, nearly matching the number of new homes constructed during the same period, 172,657. These numbers underscore the severity of the situation, as the resources required to rebuild these homes are diverting attention and funding away from efforts to expand the overall housing stock. The Insurance Council of Australia refers to this phenomenon as “the homes we build twice,” emphasizing how the repeated need for repairs consumes critical labor and material inputs that could otherwise contribute to new housing developments. Andrew Hall, CEO of the Insurance Council of Australia, pointed out that each insurance claim competes with the demands of new construction projects. He noted that additional pressures come from the growing need for AI data centres and preparations for the 2032 Olympic Games, which together place even greater strain on an already strained construction sector. Hall stressed that unless resilience becomes a central component of the national housing strategy, the housing shortage will persist. Construction costs have surged significantly, with the Cotality’s Cordell Construction Cost Index indicating a 30 percent increase in the cost to build a home over the past five years. This rate of increase far exceeds the 24 percent rise in the consumer price index during the same period. Specific items such as roof tiles have seen a staggering 77 percent price hike, while windows, plaster, plywood, copper piping, structural steel, cement, and concrete all experienced increases ranging from 37 to 48 percent. Labor costs have similarly escalated, particularly for roofers and glaziers, whose wages have grown substantially due to the heightened demand for their services. Remote and regional areas face especially steep construction costs. For instance, in New South Wales, the cost of building a home in Broken Hill has jumped from $395,000 to $555,000, a 40.51 percent increase. Similarly, in Wodonga, Victoria, the cost has risen from $379,000 to $542,000, marking a 43.01 percent increase. These figures reflect broader trends of escalating expenses driven by both local and global factors. Scott Hawkins, managing director for Australasia at Munich RE, attributed the rising costs to global supply chain disruptions. He explained that Australia's reliance on imported construction materials makes it particularly vulnerable to fluctuations in international markets. Hawkins emphasized that these challenges are not unique to Australia, pointing to the broader context of global economic instability and inflationary pressures that affect construction costs worldwide. The Insurance Council is urging governments to take action by reforming state taxes and levies that raise the cost of insurance, establishing a Flood Defence Fund costing $30.15 billion over ten years to safeguard at-risk communities, strengthening the federal government’s Disaster Ready Fund, and preventing new developments in high-risk zones. Since 2019, the insurance industry has recorded 29 extreme weather events, leading to $20.7 billion in losses from over 760,720 home and building claims. These ongoing challenges highlight the urgent need for policy reforms and strategic investments aimed at enhancing resilience and addressing the multifaceted nature of Australia's housing crisis.
A report by the Insurance Council of Australia reveals that construction material costs in Australia have surged by up to 70% over five years, significantly outpacing inflation. The increase is most pronounced in Queensland and northern regions, where home-building costs have risen by 44% since 2021. Between 2022 and 2026, insurers processed 400,000 claims related to home repairs or rebuilding after disasters, totaling $11.3 billion. Roof tiles, windows, plasterboard, and concrete saw the largest price hikes, with roof tiles rising over 70%. In Queensland alone, over 240,000 homes have been repaired or replaced in the past five years. ICA CEO Andrew Hall attributes these costs to inflation and increased demand for materials and labor due to frequent extreme weather events. He notes that insurers and builders compete for the same resources, creating a 'double whammy' effect. Professor Paula Jarzabkowski suggests focusing on building more resilient, 'future-proofed' homes to reduce the strain on resources and improve safety against climate-related risks.
Bias read (Center): The article presents data-driven findings without overt ideological slant. It reports on economic trends and industry responses to climate-related challenges, citing expert opinions from both the Insurance Council of Australia and academic researchers. While the issue of climate resilience and urban
Why factuality (88): This article provides additional specifics such as the 70% increase in certain materials and regional breakdowns (Queensland). It references the same Insurance Council report and confirms the $11.3 billion figure. The data is consistent with the other articles and adds valuable contextual details.
Why objectivity (85): The article presents information in a balanced manner, quoting Andrew Hall and explaining the impact of inflation on insurance premiums. While it mentions the competition for resources, it does so without overt bias or emotional language, maintaining a high level of objectivity.
The AgeIndependentCenterFactual 85Objective 808/31/2026
An article published in The Age on August 31, 2026, discusses the growing financial burden of repairing homes damaged by climate-related disasters in Australia. It highlights that over the past four-and-a-half years, $11.3 billion has been spent on rebuilding and repairing homes affected by extreme weather, with 145,392 homes damaged in 2025 alone, nearly matching the number of new homes built that year. The Insurance Council of Australia refers to these homes as 'the homes we build twice,' emphasizing how this process competes with efforts to address the housing shortage by consuming resources like builders, materials, and labor. The article notes that construction costs have risen significantly, outpacing inflation, with specific materials like roof tiles, windows, and structural steel seeing price hikes of up to 77%. Regional areas face particularly high costs, with examples from Alice Springs and Broome. Experts attribute the rising costs to global supply chain issues and increased demand for construction due to factors like AI data centers and the 2032 Olympics.
Bias read (Center): The article presents factual data and expert opinions without overtly favoring any political ideology. While it raises concerns about the impact of climate disasters on housing affordability and construction costs, it does not take a partisan stance or promote a specific political agenda. The focus,
Why factuality (85): The article cites the Insurance Council of Australia's report and provides specific figures such as $11.3 billion in claims, 145,392 homes damaged in 2025, and a 30% increase in construction costs. These numbers align with the cross-source consensus among the articles. It accurately reports on the c
Why objectivity (80): The tone remains neutral, presenting both the problem and potential solutions. However, there is slight editorializing in the quote from Andrew Hall suggesting that resilience investment should be part of the national housing strategy, which implies a policy recommendation rather than purely reporti
An article published on August 31, 2026, by The Sydney Morning Herald highlights the growing financial burden of repairing homes damaged by climate-related disasters in Australia. Over the past four and a half years, insurers have spent $11.3 billion on claims related to extreme weather events, with 145,392 homes damaged in 2025 alone, nearly matching the number of new homes built that year. This spending competes with resources needed for new housing development, exacerbating the housing shortage. The Insurance Council of Australia refers to these homes as 'the homes we build twice,' emphasizing the strain on builders, tradespeople, and materials. Rising construction costs, driven by inflation and supply chain issues, have surged significantly, particularly for materials like roof tiles, windows, and structural steel. Remote and regional areas face especially high costs, with some locations seeing over a 40% increase in home-building expenses. Experts warn that without greater investment in disaster resilience, the housing crisis will persist.
Bias read (Center): The article presents factual data and expert opinions without overtly favoring any political ideology. It discusses the economic impact of climate disasters on housing without taking a partisan stance, though it implies the need for government action on resilience and housing strategy. The framing,雖
Why factuality (85): This article mirrors the first in content and sources, providing the same statistics and quotes. It accurately reflects the cross-source consensus and does not introduce conflicting information. The mention of the Insurance Council's report and the 30% cost increase supports its factual reliability.
Why objectivity (80): Similar to the first article, this piece maintains a neutral tone but includes a quote from Andrew Hall that suggests a policy stance, which may lean slightly towards advocating for government action rather than remaining strictly objective.
How each side covered it
The same event, grouped by the political lean of the outlets covering it.
progressive
center
conservative
★
How each side covered it
Support independent, bias-aware news and unlock the social pulse, community voting, and every other Supporter feature.
Australia
