Although there was a substantial jump in the number of new homes completed in Auckland in March, the overall trend still shows a decline in new home completions in the region.
Auckland Council issued 1255 Code Compliance Certificates (CCCs) for new dwellings in March, after they slumped to 899 in February.
CCCs are issued when a building is completed so are the best indicator of actual new housing supply, unlike building consents, which are issued prior to building work commencing so are an indication of potential new housing supply.
However even with the upswing in numbers in March, the overall trend for new housing in Auckland is declining.
The 1255 new homes completed in March was down 27% from the 1728 completed in March last year.
The downward trend can clearly be seen in the graph below, which shows monthly completions peaked at 1949 in October 2023 and have been in a more or less steady decline since then.
The best indicator of where the new housing market is at in Auckland is probably the rolling 12 month figure for CCCs.
This peaked at 19,560 in the 12 months to May last year, but had declined to 16,338 in the 12 months to March this year. That's a decline of 3222 new homes (16.5%) a year.
Because the monthly figures are continuing to decline, it's likely the 12 month average will also keep falling for the rest of this year.
According to Statistics NZ, 14,650 building consents were issued for new dwellings in Auckland in the 12 months to April this year. So the current decline in the number of new homes being built in the region may still have some way to go before it hits the bottom.
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