Black Summer bushfire survivors who lost houses face years-long waits to rebuild

Bushfire survivors in Victoria and NSW are being forced to wait for up to two years to rebuild the homes they lost as the property boom fuels a massive shortfall in builders and building supplies.

It’s a problem facing thousands of homeowners in regional areas, after the Black Summer bushfires at the end of 2019 and start of 2020 destroyed 2448 homes in NSW and more than 700 in Victoria.

Australian Housing and Urban Research Institute (AHURI) managing director Michael Fotheringham said metro-based builders were prioritising city building and renovation jobs, including those being built under the HomeBuilder grant scheme, which have to be started within 18 months of contracts being signed.

The issue had been particularly difficult in regional NSW and Victoria where there were fewer builders, he said.

The long delays are being added to those already caused by the coronavirus pandemic, such as problems accessing building materials.

“If just one builder is swamped in regional Victoria that has a huge impact,” Dr Fotheringham told Domain.

HomeBuilder offered grants of either $25,000 or $15,000 to eligible applicants who were building or renovating a home, prompting record numbers of house and land sales between June last year and March this year, when the scheme ended.

In Victoria, 29,198 applications to build a new home with a HomeBuilder grant were made, while there were 16,266 applications in NSW.

While the building industry is booming, for bushfire-affected communities, the delays are adding to frustrations.

Based near Cobargo, Bega Valley Shire councillor Tony Allen said locals without permanent homes were doing it tough heading into winter this year.

Some residents were having to stay in modular homes where their houses had once stood while they waited for permits and available builders.

“The demand for builders is just so great … and with COVID it’s made everything more difficult,” Cr Allen said. “People are not spending their money on travelling so they’re doing home modifications like redesigning their kitchens and that’s happening as well as all the home building.”

Bega Valley Shire mayor Russell Fitzpatrick said 500 homes had been destroyed in the area, but only 100 people had successfully applied for a development permit and started building again.

“There are still hundreds to go,” Cr Fitzpatrick said. “We don’t have enough planning people at the moment, like every council along the eastern seaboard.

“We have planning people that haven’t taken a holiday in 18 months because they’re just so busy.”

In the Eurobodalla Shire in regional NSW, 500 homes were lost in the Black Summer bushfires. Affected residents there are also facing long waits. Eurobodalla Shire Mayor Liz Innes said there was a massive shortage of builders in the region, adding: “In our shire it is a real issue.”

The delays were also affecting the local rental market, she said. “We were always fairly short in the rental space because of holiday rentals and Airbnb but with 500 houses out of the equation rental accommodation is diabolical at the moment.”

In Victoria, it’s a similar story, with those who lost homes in East Gippsland also struggling to find builders or rental properties.

The region saw 367 dwellings lost to the flames, but only 70 permits to rebuild had been approved, East Gippsland Shire mayor Mendy Urie said.

Around 40 short-term modular homes had been delivered to the shire, with 37 of them now occupied, she said.

COVID-19 added a layer of complexity to the bushfire recovery of the area, as many people had struggled to make a decision whether to rebuild while in lockdown, unable to talk to others in the community.

“I think people are rebuilding at their own pace,” Cr Urie said. “Across the communities there’s such a range of where people are up to – some are rebuilding while some are still deciding.”

Along with the delays in obtaining a builder, the extra planning needed to rebuild in bushfire affected areas was also making it more difficult, with extra safety measures and materials needed before rebuilding, she said.

Experts say there are no quick solutions to the building supply and builder issues in bushfire-affected areas. While some supply issues may be solved through extra wood mills opening, a lack of builders could add to delays for some time.

“There are no easy answers,” AHURI’s Dr Fotheringham said. “This is one where the federal government, the states but also industry need to get together to fix the problem.”

The Master Builders Association Victoria added they sympathised with bushfire survivors who were facing long waits.

MBAV chief executive Rebecca Casson said the association was continuing to work with all levels of Government – and industry partners –  to manage supply chain challenges.

“Although HomeBuilder has lifted some demand, supply chain issues are still affecting the pace at which builders and tradespeople can complete work. Specifically, there is a shortage of timber, which is causing significant delays,” Ms Casson said.

“We understand there’s real tension at the moment, and our message to consumers is, please be patient with builders and tradespeople.

“Everyone is trying their best in some very challenging circumstances.”