Homebuilding consents fall 24.9%

Homebuilding consent numbers have now declined for 11 consecutive months, according to the latest data from Stats NZ.

There were 35,236 new homes consented in the year to March, which was 24.9% lower than the year before.

This is part of a longer-term trend: consents have plummeted 30.9% since they peaked at 51,015 in May 2022. During that time, consents have fallen across the board, declining 38.2% for standalone houses and 24.2% for multi-unit homes (which includes townhouses, flats, units, apartments and retirement village units).

Fewer homes consented today means fewer new builds tomorrow. That is a concern given widespread commentary about a housing shortage in New Zealand.

To make matters worse, this decline in future supply is coinciding with an increase in demand: during the year to March, the national population grew by a very strong 2.5%, according to Stats NZ.

If supply fails to keep pace with demand over the medium- to long-term, that is likely to lead to an increase in prices and rents.

As you know, construction loans operate differently to standard home loans. If you know anyone who wants to build a home, please introduce us and I’ll be happy to explain the ins and outs of construction loans, compare loans for them and manage their application.

 

 


Published: 30/5/2024