The number of new homes being consented continues to decline but the rate of decline is slowing, suggesting the slump in new residential construction may be near the bottom.
The latest figures from Statistics NZ show that 33,530 new dwellings were consented in the 12 months to May this year.
That was the third consecutive year to May that the number of new dwelling consents has declined, from 51,015 in the year to May 2022, to 45,164 in year to May 2023 and 34,851 in year to May 2024.
However, the annual rate of decline is slowing, from -11.5% in year to May 2023, to -22.8% in year to May 2024 and -3.8% in year to May 2025.
In the month of May this year, 3151 new dwellings were consented, down just 0.8% compared to May last year.
The slowdown in dwelling consents is patchy depending on the type of dwelling.
In the 12 months to May, dwellings for stand alone houses were up 2.4% compared to the previous 12 months and apartment consents were up 6.2% compared to the previous 12 months, while retirement village units were down 4.5% for the year which follows a 47.3% decline in the previous 12 months, and townhouses and home units were down 11.0%.
The total estimated value of residential building work consented in the 12 months to May this year was $17.391 billion, -4.5% compared to the previous 12 months.
The value of non-residential building work being consented has also slowed, but not by as much as residential construction.
In the 12 months to May, $9.023 billion of non-residential building work was consented, which includes commercial buildings such as shops, offices and factories, and non-commercial buildings such as schools and hospitals.
That was down just 2.3% compared to the year to May 2024, which followed a 7.0% decline in the year to May 2024.
Altogether, the total value of all construction work (residential and non-residential) consented in the 12 months to May this year was $26.981 billion, -3.6% compared to the previous 12 months.
That followed a 13.1% decline in the year to May 2024.
The graph below shows the monthly trend in dwelling consents issued by dwelling type.
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