Aussie tradie facing worst market in 30 years as renovation demand slows: 'Expecting it to get worse'

May 4, 2026 - 06:08

A Sydney-based tradie says he is facing the toughest market in three decades as demand for home renovations continues to slow sharply. The builder, who has worked in the industry for over 30 years, told reporters that the current downturn is unlike anything he has seen since the early 1990s.

"Unfortunately I'm expecting it to get worse before it improves, especially if they're continuing to have more rate rises," he said. The slowdown comes after a period of record-high renovation spending during the pandemic, when homeowners poured cash into kitchen upgrades, bathroom makeovers, and backyard builds. Now, with interest rates staying high and household budgets squeezed, many are putting those plans on hold.

The tradie noted that inquiries for new projects have dropped significantly, and some clients are cancelling jobs that were already booked. "People are just not spending money the way they were," he added. He pointed to rising material costs and a general uncertainty about the economy as key factors behind the slump.

Industry data supports his view. Recent figures show a steep decline in renovation approvals across the country. Many small building firms are now struggling to find enough work to keep their crews busy. Some have already started laying off staff.

The tradie said he has had to adjust his own business, cutting prices and taking on smaller jobs just to stay afloat. "You have to be realistic," he said. "You can't charge what you used to." He expects the tough conditions to last at least another year, unless the Reserve Bank starts cutting rates sooner than expected.

For now, he is advising other tradies to save cash where they can and avoid taking on too much debt. "It's a waiting game," he said. "You just have to ride it out."