Home renovations are booming, creating further delays in stretched building industry

More time at home during lockdowns is driving a surge in people wanting to renovate their homes. (Pexels: Blue Bird)

As people are spending more time at home during lockdowns, home renovations are going through the roof.

According to CommSec, renovation loans increased 7.4 per cent in June, hitting a 19-year record.

On the New South Wales Mid North Coast, building delays for home renovations are up to eight months, due to the surge in demand and delays in building materials.

The Master Builders Association of NSW state manager Brian Seidler said the growing demand would be a challenge in the lead up to Christmas.

"We are bracing ourselves now," he said.

Mr Seidler says the price of raw materials is "skyrocketing", which will reflect in the costs for customers with new builds and renovations.

"There's been a substantial increase possibly due to the scarcity of labour or increase in prices in timber and steel," he said.

Wait times for tradespeople is up to eight months in some parts of the Mid North Coast. (ABC News: Clarissa Thorpe)

'We are on rations'

Deb Farquhar has owned a cabinetry business in Coffs Harbour for more than 30 years and said she has noticed a huge increase in people moving to the region and wanting to renovate.

"They've sold up in Sydney, they're buying [local] houses and refurbishing them," she said.

Ms Farquhar says whiteboard and chipboard to make the cabinetry is difficult to source along with hardware from overseas.

Demographer Bernard Salt is expecting people moving to the regions will continue to grow. (ABC Coffs Coast: Melissa Martin)

"We are on rations," she said.

"Stocks are held in the capital cities and not in the regions like they used to be."

But Ms Farquhar said locals were also capitalising on home renovations due to the rise in house prices in the regions.

Regional exodus continues

Demographer Bernard Salt is expecting the influx of people moving to the regions will continue, with working from home arrangements so readily accessible.

Last year, ABS data showed Australia's capital cities had a net loss of 11,200 people in the September quarter.

Mr Salt said the outflow of people from Melbourne and Sydney was "extraordinary".

"I think this demand will grow.

"Initially it was to escape the virus and the lockdowns but I think people have become used to the freedom to live and work wherever they choose."

And with people spending more time at home and travelling less they are bound to trickle that money into the family home.

"We're very house proud," Mr Salt said.