The latest building consent figures suggest the residential construction industry is showing no sign of slowing down, with 43,466 new dwellings consented in the 12 months to the end of May, according to Statistics NZ.
That was up 17.4% compared to the previous 12 months, and up 25.2% compared to the 12 months to May 2019.
The biggest growth has been in attached, low rise dwellings such as home units and town houses, with 13,297 consented in the 12 months to May, up a whopping 48.9% compared to the previous 12 months.
The number of stand alone houses grew more modestly, with 24,034 consented in the year to May, making them our most popular type of dwelling, although their numbers were up just 9.7% compared to the previous 12 months.
However the number of apartments being consented has taken a dip, dropping from 4194 in the year to May 2020, to 3985 in the year to May 2021, a decline of 5.0%. Retirement village units were up 8.4% for the year to May at 2150.
The value of home improvements is also on the up, with $2.143 billion of structural alterations to dwellings consented in the year to May, up 11% compared to the previous 12 months.
Altogether, that took the total value of all residential construction work consented in the 12 months to May this year to $18.315 billion, up 17.9% compared to the previous 12 months.
On top of that another $7.89 billion of non-residential building work was consented in the year to May, up 21% compared to the previous 12 months.
In the month of May, $2.696 billion of construction work of all types was consented, up 30.2% compared to May 2020, and up 23.8% compared to May 2019.
Over the 12 months to May 2021, $26.728 billion of construction work of all types was consented, up 18.3% compared to the previous 12 months and up 16.7% compared to the 12 months to May 2019.
The interactive charts below show the trends in the number of residential consents issued by region, and in the types of dwellings consented each month.
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Building consents - residential
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9 Comments
So how long before the oversupply kicks in? Everyone’s building like we’ll be back to 90k population growth per annum before the years out.
Good question. What happens if varient Omicron defeats the Pfizer vaccine & we stay shut for another 2 years?
At a guess, 2026 if the borders remain closed and never if the government reverts to their pre-Covid19 immigration levels.
We under built prior to 2018, had a short period of supply matching population increase and then over built in 2020 (due to Covid19 reducing immigration).
Fortunately there (at last) seems to be a change re the merits (so called) of immigration - we have had enough, got enough and need to focus on the infrastructure deficit created. Water, hospitals, schools, transport, housing..you name it, all struggling to cope.
Unfortunately we have already blown the sugar hit from all this immigration. And so the addict will crave for more.
Completion is a whole different ball game to consents.
Pretty sure articles on this site concluded 95% of consents have have CCCs at about the three year mark. Covid related supply chain issues may stretch that out a bit at the moment.
By the time the consent is issued aren't you generally looking at a big chunk of cash already paid out?
Shipping reliability last April for Auckland and Tauranga was running just above 5 %. Shipping lines have no governing body, they decide when and where to go. NZ is a “ drop in the ocean”, pardon the pun, not cost efficient, hence what goods do land on our shores are delayed and becoming more expensive and the cost is past on to the consumer.
Yes, there are temporary supply chain issues, they will pass.
I suspect the shipping issues themselves may pass, but NZ prices never seem to go back to where they were once an underlying issue or cause is resolved.
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