Building and Construction Minister Chris Penk says consents for more than 40,000 new homes in the year to June points to a positive outlook for the sector.
The Minister said it is the first time since 2023 that new home consents have exceeded the 40,000 milestone – up 19% on the last year with strong increases across housing types including stand-alone homes, townhouses and retirement villages.
“This is a significant turnaround for a sector that has faced some challenging conditions over recent years following a decline in building activity that began in 2022. More consents mean more building, more jobs and more opportunities for economic growth,” said Mr Penk.
These results, released by Stats NZ, follow recent SEEK data showing demand for construction workers increased 35.1% compared with a year ago, making construction the fastest-growing industry for job advertisements.
“This data is encouraging to see, and this National-led Government is committed to continue fixing the basics and building the future,” said the Minister.
“We are focused on building the foundations for growth by cutting restrictive red tape, setting consistent and clear rules, and delivering meaningful reform to enable industry to build the homes we need.”
This includes Government action to:
- Provide builders and homeowners more choice by allowing the use of tens of thousands of trusted overseas building products;
- Introduce a mandatory building inspection target of 80 per cent of inspections in three working days;
- Increase competition by making it easier for private Building Consent Authorities to compete with councils.
Minister Penk said practical changes to further confidence in the sector and boost activity include embarking on the most significant reform of the building system in a generation.
“We have introduced legislation that will replace joint and several liability with proportionate liability, meaning parties will be responsible for the work they actually carry out, while strengthening homeowner protections through mandatory home warranties and professional indemnity insurance,” he said.
“The legislation will also enable Building Consent Authorities to voluntarily consolidate their functions improving consistency across the country, and introduce a fast-track 10-working-day consent pathway for new homes incorporating solar generation or other sustainable features.”
