Friday, July 19, 2024

Government to tackle home construction costs

Building and Construction Minister Chris Penk says the Government is focused on reducing sky-high home construction costs after new Stats NZ data showed the cost of building a house has increased by 41% since 2019.

“Further analysis shows building costs are consistently higher in New Zealand than several overseas jurisdictions, with comparisons showing the cost to build a standalone house is around 50% more expensive than it is in Australia. This must change,” said Mr Penk.

“Not only do high building costs make it harder for families trying to purchase their first home, but they have far-reaching economic and social consequences such as higher mortgage repayment costs, higher rents, and increased demand for social housing.”

The Minister says tackling out-of-control construction prices was one of the keys to reducing the cost of living and providing Kiwis with high-quality, affordable housing.

“Kiwis pay too much for building materials. We will ensure more high-quality building products are approved to increase competition, lower building material costs, and support our resilience to supply-chain disruptions.”

“This Government will reform the building consent system by streamlining the consent process, making product substitutions easier, and clarifying roles and responsibilities within the system. Removing unnecessary barriers and giving greater certainty to businesses means better productivity and less delays when building a home,” he said.

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