New Home Consents Cross 40,000 as Housing Sector Regains Momentum

The Government believes maintaining this trend will help address housing shortages while creating stable opportunities for builders, contractors and suppliers across the country.

New Zealand's housing sector is showing fresh signs of recovery after the number of new homes approved for construction climbed above 40,000 for the first time since 2023. The latest figures for the year ending June reflect stronger confidence across the industry and point to a healthier pipeline of residential building activity.

Building and Construction Minister Chris Penk said the increase marks an important shift after several years of slower construction activity. New home consents rose 19 per cent compared with the previous year, with growth recorded across stand-alone houses, townhouses and retirement village developments. The stronger figures are expected to support employment, encourage investment and contribute to wider economic growth as more projects move from planning to construction.

Rising Demand Signals Recovery

The latest data from Stats NZ is backed by a sharp increase in demand for skilled workers. Recent SEEK employment figures show construction job advertisements jumped by 35.1 per cent compared with a year earlier, making construction the fastest-growing industry for new job listings. The combination of higher building approvals and stronger hiring demand suggests the sector is gaining momentum after a difficult period that began in 2022.

The Government believes maintaining this trend will help address housing shortages while creating stable opportunities for builders, contractors and suppliers across the country.

Reforms Designed to Speed Up Building

A series of policy changes is being introduced to make home building faster and more efficient. Builders and homeowners will gain access to a wider range of trusted overseas building products, giving them more choice and reducing supply constraints. New inspection targets will require 80 per cent of mandatory building inspections to be completed within three working days, helping projects stay on schedule.

The Government is also opening the market to greater competition by making it easier for private Building Consent Authorities to operate alongside councils, creating additional options for developers seeking approvals.

Building System Overhaul

Broader reforms are also reshaping the country's building framework. New legislation will replace joint and several liability with a proportionate liability model, ensuring each party is responsible only for the work it performs. The package also strengthens consumer protection through mandatory home warranties and professional indemnity insurance.

The proposed changes include allowing Building Consent Authorities to voluntarily combine services for greater consistency nationwide while introducing a fast-track 10-working-day consent pathway for new homes that include solar generation or other sustainable features, supporting quicker delivery of energy-efficient housing.