Box C: Financial Stress and Contagion Risks in the Residential Construction Industry | Financial Stability Review – October 2022
The residential construction industry in Australia is facing challenges due to the sharp rise in construction input costs, compounded by shortages of labour and materials, which has eroded profit margins on existing fixed-price contracts (Graph C.1). Reflecting these pressures, a number of large residential construction firms have entered into insolvency over the past year.…