He said the "unprecedented" price hikes in building materials including steel and timber, along with PVC and copper had seen the cost rise by almost as much as it had in the previous decade.

"The average house price has increased by nearly $50,000," Mr Womersley said.

"The majority of that is because of the volatility in the steel and pine market."

Plumbers and electricians are also having to increase their rates due to the high price of PVC and copper, Mr Womersley said.

He said it was disappointing to have to increase the price for people wanting to build a new home.

"It can be unsettling for prospective clients, but we've worked on the same overheads and profit margins since I started the business in 2010," Mr Womersley said.

He said as a comparison, the average cost of building a new home increased by about $60,000 in the 10 years prior to 2021.

Mr Womersley said he was unsure whether prices would be affected in the coming months.

He said the pandemic had resulted in mass shortages of building supplies.

COVID-19 came on the back of bushfires across Australia which ripped through pine plantations in a number of states.

In addition to increased costs, the supply chain issues have resulted in some delays, Mr Womersley said.

In previous years, material for a housing frame could be ordered and delivered within two weeks. However, that has blown out to as long as 13 weeks. "We've been contacting our frame and truss company and asking for a slot on the board at a predicted delivery time after we sign the contracts," Mr Womersley said.

Despite the rising costs, there is strong demand from people wanting to build in Warrnambool. "For the month of January we had 40 inquiries, which was in increase from 12 in December, which is usually a quieter month," Mr Womersley said.

Master Builders Victoria chief executive officer Rebecca Casson said the cost of building a home in Victoria was rising faster than in any other state due to soaring supply prices. She said she was concerned the soaring costs and labour shortages may have a negative impact on building and construction companies.

"It appears that the large increases in builders' material and labour costs following COVID-19 shutdowns, combined with the reduced workforce capacity, is starting to impact Victorian builders significantly," Ms Casson said.

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