Why We’re Still Waiting: What’s Really Behind Building Delays in NSW

By the MK Fuller Team 20 May 2025

If you're building, renovating, or even just trying to get your foot in the door of the NSW property market right now, you’ve probably heard a lot of blame being thrown around especially towards local councils. But from where we stand on-site every day, the story is a lot more complicated than that.

Let’s break it down.

It's Not Just the DA Process

There’s been a bit of noise lately from industry bodies pointing fingers at local councils for holding up housing supply but the facts tell a different story. According to the NSW Department of Planning, there are more than 75,000 dwellings in Greater Sydney that have been approved… but haven’t been built.

This isn’t about red tape. It’s about real-world pressures that are making it harder for builders like us and developers across the board to get the job done.

The Perfect Storm

We’re currently navigating a storm of compounding issues that are affecting every stage of construction. Here’s what’s really going on behind the scenes:

1. Material Shortages

Essential materials like timber, steel, and concrete are either hard to come by or significantly delayed. Even appliances are stuck in the backlog thanks to global shipping issues. When you can’t get what you need, work grinds to a halt.

2. Skilled Labor is in Short Supply

Roofers, bricklayers, carpenters - you name it, we need more of them. Demand is outweighing supply, especially in specialised trades. Everyone's stretched thin, which adds weeks (if not months) to project timelines.

3. Rising Costs Across the Board

Material and labour shortages have also driven up costs. And with higher interest rates tightening everyone’s belts, we’re seeing fewer projects move past the DA phase into construction. It’s not that the projects aren’t approved - they’re just financially stuck.

4. The Insurance Bottleneck

Let’s talk about something less visible but equally frustrating: Home Building Compensation Fund (HBCF) insurance delays. Before we can start work, we need this cover in place. But right now, getting it sorted can take longer than expected, adding yet another delay before shovels even hit the ground.

5. Public Infrastructure Pulling Resources

Government infrastructure projects are booming - which is great for the state, but tough for the private sector. Skilled workers and materials are being pulled into large-scale public jobs, further depleting what’s available to residential and commercial builders.

6. Flood Recovery Efforts

Add to that the ongoing rebuild efforts from natural disasters in Queensland and Northern NSW. A lot of skilled trades are rightly being directed toward recovery and repair - another factor contributing to statewide shortages.

So, Who Is to Blame?

Honestly, no one group is solely responsible. It’s a multi-layered issue that needs a collaborative response. Councils, state governments, builders, insurers - we all have a role to play in finding practical solutions that move projects forward.

What we’d love to see more of is realistic timelines, streamlined insurance processes, support for training new tradies, and a fairer conversation about where delays are actually happening.

From Our Site to Yours

At MK Fuller, we’re committed to transparency. We keep our clients in the loop about timing, cost shifts, and supply issues - because we believe communication is key to riding out this period. The reality is: it’s not business as usual right now, but we’re doing everything we can to build quality homes and spaces as efficiently and honestly as possible.

We’ll keep showing up, tools in hand, working around the delays - one solution at a time.