The number of new homes being built in Auckland continues declining

The number of new homes completed in Auckland last year fell 5.2% year-on-year

Property / news

The number of new homes completed in Auckland last year fell 5.2% year-on-year

25th Feb 25, 9:57am by Greg Ninness

The number of new homes being built in Auckland continues to slowly but steadily decline.

The latest figures from Auckland Council show it issued 17,169 Code Compliance Certificates (CCCs) for new dwellings in 2024, down by 5.2% from the peak of 18,103 in 2023. (See graph below for the annual trend).

CCCs are issued when a building is completed and so are the most reliable indication of new housing supply, unlike building consents which are issued before construction starts.

Last year's decline in CCC numbers brought an end to more than a decade of significant growth in Auckland's housing supply, but it remains at an historically high level.

However, the latest figures suggest dwelling completions are continuing to decline.

In December last year 1019 CCCs were issued for new dwellings in the region, down 23.2% compared to December 2023.

And the rolling monthly average over a 12 month period was 1431 in December last year, down from 1509 in December 2023.

The figures suggest the number of new homes being completed has been in a slow but steady decline since about the middle of last year.

The decline so far has not been severe enough to cause a shortage of new homes. But if the decline in the number of homes being built continues, and current indications are that it will, then a shortage could develop at some stage in the future.

Of course that is also dependent on the rate of population growth in the region, which at the moment is also going through a period of change. So there is considerable uncertainty about how well the supply of new homes in the Auckland region will match demand created by population growth in the years ahead.

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17 Comments

by DSSH | 25th Feb 25, 10:11am 1740431500

It would be nice if the reporters could separate townhouses from standalone and also retirement units

by Timutei | 26th Feb 25, 11:59am 1740524382

For some reason they stick to their averages. Not useful

by Pragmatist | 25th Feb 25, 10:17am 1740431854

Number of houses being completed has to decline, given the decline in consents. The only question is how fast the industry clears the remaining backlog.

https://www.interest.co.nz/property/131439/number-new-homes-being-conse…

by Rampart | 25th Feb 25, 10:19am 1740431957

The backlog is well and truly cleared

by HouseMouse | 25th Feb 25, 12:15pm 1740438959

Completions now reflect consents issued 18 months+ ago.

This is another situation where this website’s analysis has been off the mark.

Greg was saying 1.5 to 2 years ago that high consent levels = high levels of dwellings completed down the line. He kept repeating this mantra. Based on the notion that usually a very high proportion of dwellings consented are built within a couple of years. The thing is, it is ‘usually’ but not always.

I said several times that this was not going to be the case. I set out the reasons why. I was ignored. Yet, I work within the industry and know my stuff.

It’s this kind of bloody mindedness on this website that has disappointed me.

by Greg Ninness | 25th Feb 25, 12:45pm 1740440711

I'm sorry if you feel you were ignored HouseMouse, but that wasn't the case. We read your comments, but didn't find anything worthwhile in them.

That's still the case.

by ex socialist | 25th Feb 25, 2:01pm 1740445307

I'm with Greg. Completions are continuing at a very high level. To compare it to the peak is unfair - as the boom times were (well) booming. The reality is that consents lead completions - and completions have continued at a rate because: the cost of consents are high so people only get them when they intend to continue; many consents were caught with difficulties getting resources so there is a big pool of consents out there still; many developers believe that when the homes come to market prices would have gone up.

Historically that is a large set of completions - and greatly exceeds the population growth in auckland

by IT GUY | 25th Feb 25, 10:25am 1740432344

I do not think FHBers have ever been a massive component of spec build, due to banks fears low equity etc.

I see a real danger that the 800k- 1.2 mil build space is now dead, people cannot sell the lower rung on the ladder to step up right now... a quick drive around a few suburbs shows you mainly people trying to get out of past purchases via townhouses.

Its cheaper just to buy a modern home now then take build risk on.

by Eschaton | 25th Feb 25, 12:23pm 1740439386

Dejavu.

by John Mendel | 25th Feb 25, 12:40pm 1740440457

The market is too dangerous now and the construction costs are so high

by Averageman | 25th Feb 25, 1:28pm 1740443286

Agreed. Land price greed is still to high, especially when overlaid with todays construction costs. Costs that i cannot see tanking greatly due to the inflation storm the last Govt created.

by kraken | 25th Feb 25, 1:13pm 1740442382

So many sections outside of Auckland asking $280K or less.

by nigelh | 26th Feb 25, 3:32pm 1740537150

Did a search on RealEstate for sections in the Auckland Region with a price range 250k to 400k, ~174 results. One appeared with a price of $269k, another at $275k with the great majority by negotiation. A smattering around $300k

Auckland region is pretty large so outside of Akl is quite some distance.

Waiuku is part of Auckland Region but at least 25km from Central Akl. I classify Waiuku and Orewa as outside Auckland

by Independent_Observer | 25th Feb 25, 1:37pm 1740443877

As a positive if you compare numbers from 10 years ago it’s a significant change if we do in fact have a housing shortage (I’m not always convinced this is the case).

circa 17,000 last year vs 5,000 this time 10 years ago is a significant increase in annual builds. It’s a massive increase.

by Mystery | 26th Feb 25, 3:23am 1740493408

I was going to say the same thing.

by nigelh | 26th Feb 25, 3:09pm 1740535780

So companies like Fletchers will sit on their unsold units, terraced houses whatever for say one to two years until someone pays their asking price? The holding costs with rates and taxes, even if reduced because services aren't connected plus interest on debt will be lower than their expected gain if sold in one to two years?

This would be applicable to other large developers as well.

They must be confident that the housing market will take off again in the next two years, particularly if there are reduced consents combined with issued consents not being built for a year. I think BCs only last a year?

by agnostium | 26th Feb 25, 9:48pm 1740559736

3 times as many completions as 10 years ago, and around 13K per year on average for the last 7 years, huge numbers compared to 2013-2016