Australian Post War Housing Boom

October 16, 2009 by Rachel Banks
Filed under: Uncategorized 

Often described in the post WWII years as `the housing shortage’, the national effort to address a very troubling problem has over the years come to be called `the housing boom’. Without a doubt it was a boom in demand and building. There was also a notable increase in house ownership, achieved in many cases through heroic individual effort and years of sacrifice.

Changing social conditions offered new opportunities, but also reduced the options. Emphasis in government housing social engineering was at first on rental accommodation; later there was a swing toward the sale of affordable housing. At a time when various influencers had cut the availability of rental homes, governments, banks, finance companies, building societies and housing co-ops were offering greater opportunities for home ownership. Ironically this was at a time of a jump in building input costs.

High on the list of factors linked to rising construction costs were the passing of legislation for the 40-hour week, and drastic increases in the cost of construction materials. By 1948 an employer had to pay an unskilled building worker a higher salary than a tradesperson had received in early 1946.

To keep both labourer and tradesman economically employed the builder needed a continuous flow of materials which was a rare event in those times. Lack of skilled workers also meant poor quality construction and further loss of time.

Contract prices were loaded with an increasing profit margin as an insurance against unseen circumstances. Under commonwealth price control, builders were entitled to a 10 per cent `profit’ on the contract price. Above award payments were not recognised in price control and yet builders often found a need to pay above award salaries to ensure building completion.

Unexpected costs could arise when, for example, hardwood flooring was suddenly out of stock, and a higher price would then have to be paid for imported flooring material.

With local cement taking forever to turn up, a batch from across the border was sometimes purchased at nearly three times the price. When compared to 1939 prices timber flooring material had, by 1948, doubled in price. Cement had risen by almost 20 per cent and terracotta roofing tiles by more than 25 per cent. A gallon of quality paint costing around 30s ($3) in 1939 had risen some 40 per cent by 1948.

When added to rising costs and shortages of materials the government restrictions, limiting the area of a new home to 12 squares (111.48 square metres) for a timber house and 1250 square feet (116.12 square metres) for one in brick, completed the recipe for an imposed economy.

The economical plan was essential; cost-saving and limitations on area made large single-purpose rooms a luxury. Verandahs and wide open porches disappeared, reducing the shelter at the front entrance to the absolute minimum. Ceiling heights had been slowly reduced from the turn of the century and were now typically nine feet (2745 mm). Until the government construction restrictions were lifted in 1952 the acceptance of no-nonsense functionalism was as much a mandated state as it was a fashionable philosophy. This was the era of the great Australian Dream.

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