Special Report : Builders face cost squeeze

By most people's reckoning, a multi-million dollar bill for construction costs would be more appropriate for a commercial building than a single house.

Western Australia's housing industry appears to be struggling on most fronts, according to market indicators.

Homebuilders in Western Australia are facing rising input costs, created by a shortage of skilled labour and increased regulatory compliance.

A mid-year fall in the number of new dwellings bought by first homebuyers was one of the first signs of a softening in Western Australia's housing market in 2007.

One of the common criticisms of first homebuyers made by older generations is that their expectations are too high.