First, it was a dream home, then a nightmare.
Across the globe, homeowners are facing a devastating reality as their most significant investment begins to crack, sink, and crumble around them.
From a Utah subdivision in the US to Sydney’s western suburbs, the cost of structural issues is hitting hard, but a simple 10-cent coin could be your first line of defence.
A group of homeowners in a newly constructed Utah subdivision are suing their builder, alleging their homes are sinking into the ground.
Twenty-one families in Nephi, claim their properties, built in 2022 and 2023, are developing severe structural issues, including drywall cracking, uneven floors, doors that won’t close, and basement fissures.
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Court documents contain photos of the alleged damage. Here, a person holds a quarter up for size reference to a crack in a home in Nephi, UT, that is sinking. Source: Fourth Judicial District Court in and for Juab County, State of Utah
Chelsie Rios, who paid $990,000 (US$700,000) for her home in November 2022, told FOX 13 News that cracks began appearing less than two years later.
“We worry about wires being pulled and starting a fire,” she said, “or gas lines breaking, pipes breaking. This is our biggest investment. We have no other debt except for our house.”
The lawsuit alleges that the builders were aware the soil had a “moderate to high collapse potential” but failed to follow essential engineering safeguards, such as proper fill soil requirements and on-site geotechnical engineer supervision.
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A crack in a wall in a home in Utah that is sinking. Source: Fourth Judicial District Court in and for Juab County, State of Utah
The financial burden is immense, with one family, Mike and Brandee Wing, receiving an estimate exceeding $377,860 (US$267,000) for repairs – more than half of what they paid for their home.
Aussie homes not immune to the cracking crisis
This distressing scenario is not isolated to the United States.
Australian homeowners have faced similar heart-wrenching experiences.
In 2021, residents in Spring Farm, a Sydney suburb, found their properties cracking and sinking due to improperly filled and compacted land.
Sharon and Peter Luhr, who bought an investment property there, saw “every window and every door at the architraves are all cracked straight to the roof,” as Mr Luhr told 10 News. The damage was so severe that glass doors spontaneously smashed, forcing them to drastically reduce rent and leaving them hundreds of thousands of dollars out of pocket.
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A number of Aussie housing developments have also reported cracking walls as a result of sinking foundations over the past few years.
A class-action lawsuit was filed on behalf of the affected homeowners.
More recently, in 2024, 18 homes in Jordan Springs East, another western Sydney development, were demolished after being repurchased by developer Lendlease as part of a $600 million compensation scheme.
These properties also suffered from sinking ground, leading to cracked and damaged buildings.
The 10-cent trick that could save you thousands
While these cases often involve new builds and significant structural failures, cracks in homes aren’t exclusively a new construction problem.
Thousands of established homes report issues each year, potentially costing thousands in renovation costs if left unattended.
However, a simple trick involving a humble 10-cent coin could be the difference between a sound investment and a financial nightmare by detecting subsidence.
Property expert Phil Spencer, known for his work on Location, Location, Location, advocates for this easy test.
Subsidence is a serious issue where the ground beneath a property sinks, pulling the building’s foundations down with it.
This results in costly structural damage that can quickly drain savings.
Thinking of buying a home? Take a 10 cent coin with you.
Market estimates suggest fixing major wall cracks from subsidence can range from a few hundred dollars for minor patches to $35,000 for serious foundation underpinning, with larger, complex jobs exceeding $40,000.
Spencer revealed to Metro that the key to early detection lies in inspecting any cracks in the walls.
“If the crack is less than 3mm wide – which means you can’t fit a 10 pence piece into it – it may not be serious,” he said.
Crucially, if that familiar Australian 10-cent coin slips easily into a crack, it’s a major red flag and warrants immediate professional attention.
Beyond the coin test, Mr Spencer highlights other critical indicators of subsidence. Homeowners should be vigilant for diagonal cracks, which are often a strong sign of structural stress, or cracks that appear noticeably wider at the top than at the bottom.
It’s also vital to extend this scrutiny to the exterior of the home, as cracks visible from the outside are equally alarming.
“Cracks caused by subsidence tend to appear at ‘weak points’ in the home – typically around windows and doorframes, or where an extension has been added,” Mr Spencer advised.
“If you notice cracks in these areas, keep a close eye on them and take action if they get bigger.”
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