The construction industry in Western Australia is facing a crisis as multiple residential builders have run into trouble, leaving behind hundreds of unfinished homes. One such builder is Nicheliving, which has more than 200 homes reportedly left unfinished. The company’s registration matter has been delayed in the tribunal, leaving homeowners like Kathy Ellis in limbo. Ellis claims her Canning Vale home remains incomplete and locked up, with mould spreading due to water damage. She expressed frustration at the lack of progress and the impact on her life, stating she has been rendered homeless by the saga.
The issue of unfinished homes is not unique to Nicheliving, as the construction industry as a whole is reeling from a string of company collapses. This comes after a period of building activity fueled by uncapped COVID stimulus, which led to labour and materials cost hikes and supply chain constraints. Builders found themselves priced out of jobs, leaving behind stalled home builds and financial burden on families. Many homeowners, like Brayden Munroe, are struggling to navigate the situation as they cannot afford to fix defects or complete their homes without insurance money. Munroe stated that the banks won’t give them an extension on their loans, leaving them stuck without assistance.
Despite the challenges faced by homeowners, the tribunal’s decision-making process has been criticized for its delays and perceived lack of accountability. Residents like Kathy Ellis feel let down by the system, with Ellis referring to the tribunal’s actions as “a slap in the face.” The inability to come to a timely decision on the registration matter has left many homeowners in a state of uncertainty and distress. As a result, residents are facing the prospect of sleeping in caravans or unheated homes due to the situation.
Nicheliving has faced criticism from the board for allegedly biting off more than it could chew, leading to the incomplete projects. However, industry experts point out that the challenges faced by builders like Nicheliving are not solely due to poor management, but also a result of unforeseen factors such as the COVID-19 pandemic. The luxury of hindsight allows for easy judgment, but the reality is that many builders were caught off guard by the rapid changes in the market. This has led to a domino effect of unfinished projects and financial strain on both builders and homeowners.
The impact of the construction industry crisis extends beyond individual homeowners and builders, affecting the community at large. Families are left in limbo, unsure of when or if their homes will be completed. The financial burden of mortgage and rent costs adds to the stress and uncertainty faced by those affected. As the industry grapples with the fallout from company collapses and stalled home builds, there is a growing sense of urgency to address the root causes of the crisis and find solutions that provide relief to those caught in the crossfire. The situation serves as a reminder of the fragility of the housing market and the need for stronger regulation and support systems to prevent similar crises in the future.
