The construction industry in New Zealand is on the cusp of a major downturn, with building consents dropping by a staggering 29% in the year to February.

This decline, only the beginning of what is likely to be a major slowdown in new consents, is the first in annual terms since 2012.

According to NZ Stats construction and property statistics manager, Michael Heslop, the number of new homes consented has been declining since early 2022. With only 2,972 new homes consented in February, and the number of new homes consented dropping for the fifth month in a row.

Regions such as Otago, Canterbury, Wellington, and Auckland are among the regions that contributed most to the overall monthly drop, have seen numbers drop by up to 47%.

With fewer homes being built, the demand for rental properties will likely increase, which will lead to higher rents.

John Kenel
Assured Property

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Source: LANDLORDS