Labour Shortages & Rising Costs in 2026: Why Your Structural Wall Choice Matters in Australia?

Labour is still tight in Australia, and construction costs are not easing in a way that makes delays “absorbed” anymore. For townhouse, duplex, and multi-residential projects, as well as any other construction projects, the risk in 2026 is not just the rate you pay per trade.

That is why structural wall choice matters. A wall system that supports cleaner sequencing and fewer trade touchpoints can protect programme certainty and reduce preliminaries, holding costs, and compliance risk. And when Dincel, AFS, Ritek, or similar systems are already specified, the advantage comes from how well the installation is planned, coordinated, and quality-checked on site.

Why 2026 is a “Certainty” Year

Australia is currently facing a drastic shortage of construction workers that is projected to reach 300,000 by 2027 due to an unprecedented surge in housing and energy projects, as per the ABC official website.

To meet these infrastructure demands, the specialised workforce for major developments must more than double in size within just two years.

Experts suggest that the gap cannot be filled by recruitment alone and will require a significant boost in productivity and technological innovation. While government subsidies and migration reforms are helping, the industry still struggles with inefficient procurement processes and slow environmental approval timelines. Ultimately, the report emphasises that the sector must transition toward smarter building practices to deliver this record-breaking pipeline of work successfully.

On the residential side, the Housing Industry Association’s (HIA) Trades Availability Index (September quarter 2025) deteriorated to -0.48 from -0.40 the previous quarter, indicating worsening availability as work increases.

The practical takeaway for builders and developers: labour remains scarce, and price pressure remains real, so your scope decisions need to reduce exposure to both.

Where Labour Shortages Really Hit Your Programme

Most projects don’t fall behind because of one major issue. A crew gets pushed. A fix-off is missed. An inspection is delayed.

Walling is a common pain point because it impacts:

• Follow-on trades (services, waterproofing, linings) can’t start until walls are ready

• Weather exposure increases when wall stages drag out

• Inspections and certification get delayed when timing and documentation don’t line up

• Interface rework becomes more likely at penetrations, junctions, joints, and transitions

At Murs Projects, we focus on reducing these knock-on delays through tight sequencing, early coordination of services/fix-offs, and clear QA hold points, so your wall stages don’t become the reason the whole job slows down.

Why Structural Wall Choice is a Risk Decision (Not Just a Spec. Decision)

In a labour-tight market, the “best” wall system is often the one that:

• Reduces labour dependence

• Compresses wall cycles, and

• Improves compliance and detailing certainty

  
  

That’s why stay-in-place structural walling systems (such as Dincel, AFS, Ritek and similar) are being chosen more often on fast-paced projects in terms of wall construction.

• Cost-effectiveness: Modular/prefab options cut labour and time costs while still delivering strong, durable wall performance for residential or commercial builds.

• Faster construction: Precast and formwork-style systems speed up installation through prefabrication and quick on-site assembly, reducing labour time and project duration.

  
  

• Strength & stability: Structural walls carry and spread building loads, keeping the structure safe and preventing weak, overstressed areas.

• Design flexibility & space efficiency: Modern systems (e.g., Rediwall®, Dincel) can be customised to suit different layouts, supporting open-plan designs without losing structural performance.

• Sustainability & energy efficiency: Insulated and recyclable wall systems improve thermal performance, lowering heating/cooling demand and supporting greener building outcomes.

• Fire, sound & weather resistance: Many modern wall systems add protection by improving fire containment, reducing noise transfer, and standing up well to harsh weather conditions.

Where Wall System Choice Matters Most

Murs Projects delivers structural wall installations in Australia for a wide range of sectors, including residential homes, multi-residential developments, and commercial office projects, as well as specialist environments such as education facilities, healthcare buildings, and aged care developments - supporting both above-ground and below-ground applications with efficient, high-performance walling systems.

• Basement walls: Structural walls built below ground to retain soil and resist water pressure while supporting the building above.

• Façade walls: External walls that form the building envelope, delivering structural support and a clean, durable finish for street-facing elevations.

• Blade walls: Tall, slender structural walls used to provide stiffness and bracing, helping control lateral movement from wind or seismic forces.

• Columns: Vertical load-bearing elements that transfer loads from slabs and beams down into the foundations, enabling open and flexible floor layouts.

• Internal load-bearing walls: Structural walls within the building that support floors or roofs above while also separating spaces and improving overall stability.

• Party walls: Shared walls between adjoining properties or tenancies designed for strength, fire separation, and acoustic performance.

• Retention tanks: Concrete tank structures used to store water on-site (often stormwater or fire services), built for strength, watertightness, and long-term durability.

• Retaining walls: Walls designed to hold back soil on sloping sites, basements, or landscaping levels, providing stability and preventing ground movement.

• Landscaping walls: Low-to-medium height walls used to shape outdoor areas, create level changes, and define garden or boundary zones with a neat finish.

• Foundation walls: Structural perimeter or internal walls at the base of the building that support the superstructure and provide a stable platform for construction.

How Murs Projects Helps Reduce Labour and Cost Risk

Murs Projects focuses on what builders and developers will care about most in 2026: programme certainty, compliance confidence, and defect minimisation; delivering structural walling solutions that keep projects moving, meet requirements, and reduce rework.

We support you by:

• Advising on the right structural walling approach for your constraints

• Planning sequencing so wall cycles don’t become a bottleneck.

• Coordinating early around documentation expectations, and

• Delivering installation quality with experienced crews who understand interfaces.

If you’re starting in 2026 (or already on site), send your requirements/programme through to Murs Projects. We’ll review your wall scope, identify the critical interfaces early, and recommend a structural walling approach that keeps wall cycles moving, protecting your timeline and reducing cost and compliance risk. Get a free quote today!

FAQs

Will labour shortages slow down construction in 2026?

They’re very likely to keep slowing projects unless productivity improves. Australia’s construction worker shortfall is forecast to worsen toward a peak of ~300,000 by mid-2027, driven by major housing and energy/infrastructure demand. So 2026 remains a “capacity-tight” year where scheduling, sequencing, and trade availability can become programme risks.

Are construction costs still rising in 2026?

Most forecasts say yes, cost escalation remains elevated in 2026, even if it’s not as extreme as the pandemic spikes. Rider Levett Bucknall (RLB) projects ~4–6% cost growth across major cities in 2026 (e.g., ~4% Sydney/Melbourne; higher in parts of QLD), meaning delays and rework can still translate into real budget pressure.

Which projects benefit most from structural walling systems?

Projects that have walls on the critical path and/or high compliance and interface risk, especially:

• Basements and retaining structures (waterproofing + sequencing sensitivity)

• Cores, lift shafts, and stairwells (programme-critical vertical elements)

• Party walls in townhouse/duplex/multi-residential (fire + acoustic + certification)

• Multi-residential + commercial, where trade coordination is complex and delays compound quickly

These are the areas where faster wall cycles and fewer trade touchpoints can protect the programme.

What do you need to quote accurately?

To price and plan a structural walling installation properly, you typically need:

• Latest drawings + wall schedule (heights, lengths, thicknesses, structural details)

• System specified (e.g., Dincel / AFS / Ritek) or performance requirements if not fixed

• Programme dates + sequencing constraints (pour windows, access, staging)

• Services/penetrations & embeds (or when they’ll be issued)

• Site constraints (access, crane/handling plan, logistics, below-ground conditions)

With these, the installer can quantify the scope, plan sequencing/QA hold points, and reduce variations caused by late coordination.