Australian renovation loans surge 16% as fuel price spike threaten costs

Homeowners are advised to lock prices early and build a budget buffer.

Home renovation loans in Australia rose 16% year-on-year in January to April 2026, according to data from the National Australia Bank (NAB).

Renovation loans include alterations to houses, restorations and additions including pool, landscaping and fencing, according to NAB.

All major states experienced renovation loan growth. Queensland led the way with a 25% growth, followed by Western Australia (17.9%), South Australia (15%), Victoria (10.8%), and New South Wales (10.7%).

NAB economists warned that rising fuel prices linked to global tensions could push up renovation costs further, especially for materials and transport.

“We’re still seeing demand for renovations, with lending up 15% in the past month alone, but the risk is costs could begin creeping higher again as fuel prices flow through to building materials and labour,” said Denton Pugh, NAB Executive Home Lending.

Pugh advised Australian homeowners to build a buffer into their budget000at least 10% to 20% contingency—and locking in quotes early.

“While costs have stabilised compared to previous years, we’re starting to see some pressure emerge in areas like fuel, freight and deliveries, which is flowing through to materials such as steel, concrete and PVC,” said Stephen Reddish, owner of Senmak Construction.

“I’d encourage renovators to lock in fixed prices where possible and build in a provisional allowance,” Reddish said.