Value for money in Cairns housing is increasingly hard, a senior property analyst says

Research analyst for Herron Todd White Rick Carr said a study found Cairns homebuyers and owners were caught in the ongoing decision-making drama of whether to create, relocate, renovate or detonate.

Mr Carr said the Cairns situation reflected a situation experienced across Australia.

"Generally speaking, buyers in the inner suburban areas have the largest array of choice, between a variety of new apartment developments, older style dwellings already renovated, and older style dwellings suitable for renovation or redevelopment," he said.

"The beachfront is another area where renovation and redevelopment options are also presented."

Mr Carr said the cost of materials and shortages of tradesmen also affected the viability of renovations.

"The cost of carrying out extensions or renovations on a rate per square metre basis far outstrips rates for constructing comparable standard new dwellings," he said.

"In these circumstances, rebuilding, or completely relocating, can be more cost effective.

"The decision of whether to move or improve ultimately comes down to comparative cost. Buying an existing home and doing your own renovation is often the best value for money."