The number of stand alone houses and retirement village units being consented is declining while multi-unit housing is growing strongly, Statistics NZ says

The number of new dwelling consents issued throughout the country jumped to 2926 in October, up 14.3% compared to September and up 14.8% compared to October last year, according to Statistics NZ.

For the 12 months ended October, 32,925 new dwelling consents were issued around the country, up 6.7% compared to the previous 12 months.

The figures also show a trend to build less stand alone houses and more multi-unit housing such as apartments and terraced houses.

In the 12 months to October, 20,918 new stand alone houses were consented, down 1.3% compared to the 12 months to October 2017, and that was down 0.8% compared to the 12 months ended October 2016.

On the other side of the coin 3835 new apartments were consented in the 12 months to October, up 27.8% compared to the 12 months to October 2017, which was up 17.5% compared to the 12 months to October 2016.

Townhouses and home units showed even stronger annual growth of 31.6%, and they have have maintained extremely strong double digit growth in the number of consents being issued over the last five years.

But surprisingly the number of retirement village units being consented has declined for the last two years, down from 2034 in the 12 months to October 2016, to 1902 in the same period of 2017 (-6.5%), and down to 1895 (-0.4%) in the 12 months to October this year.

So although the vast majority of new homes being consented (63.5%) are still stand alone houses, that percentage is declining and all of the growth is coming from multi-unit housing.

Around the regions, 1077 consents were issued in Auckland in October, which was up 26.1% compared to September and up 14.1% compared to October last year, but down from the levels achieved in five of the previous six months.

Unless there is a substantial lift in new consents issued in Auckland in November, then it appears that consents will once again start to fall well behind what is required to keep pace with the region's migration-driven population growth.

However there was strong growth in October's consent numbers compared to a year ago in Waikato +20.9% and Wellington +34%, while consents were sluggish in Bay of Plenty -4%, and Canterbury +2.9%.

See the charts below for the full regional figures and to follow the trends in the types of dwellings being consented:

Building consents - residential

Select chart tabs »
The 'NZ total' chart will be drawn here.
Loading...
#issued Nationally
The 'Northland' chart will be drawn here.
Loading...
#issued in Northland
The 'Auckland' chart will be drawn here.
Loading...
#issued in Auckland
The 'Waikato' chart will be drawn here.
Loading...
#issued in the Waikato
The 'Bay of Plenty' chart will be drawn here.
Loading...
#issued in the Bay of Plenty
The 'Gisborne' chart will be drawn here.
Loading...
#issued
The 'Hawke's Bay' chart will be drawn here.
Loading...
#issued in Hawkes Bay
The 'Taranaki' chart will be drawn here.
Loading...
#issued
The 'Manawatu/Wanganui' chart will be drawn here.
Loading...
#issued
The 'Wellington' chart will be drawn here.
Loading...
#issued in Wellington
The 'Tasman' chart will be drawn here.
Loading...
#
The 'Nelson' chart will be drawn here.
Loading...
# Nelson
The 'Marlborough' chart will be drawn here.
Loading...
#issued
The 'Westland' chart will be drawn here.
Loading...
# Westand
The 'Canterbury' chart will be drawn here.
Loading...
#issued in Canterbury
The 'Otago' chart will be drawn here.
Loading...
# Otago
The 'Southland' chart will be drawn here.
Loading...
# Southland

Building consents - type

Select chart tabs »
The 'NZ total' chart will be drawn here.
Loading...
The 'Apartments' chart will be drawn here.
Loading...
The 'Houses' chart will be drawn here.
Loading...
The 'Retirement Units' chart will be drawn here.
Loading...
The 'Townhouses' chart will be drawn here.
Loading...

 

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.

24 Comments

Good. Apartments and terraced units are the answer to the affordability question in my view. Stand alone houses with their own sections aren't going to get any cheaper in the long run.

Might actually be putting a dent in the shortage now. 70% of consents result in net additional units according to Core Logic, so of the 32,925 dwellings consented, 23,000 net additional units likely to be delivered. 22,960 units needed annually to accommodate net migration of 62,000 people annually at 2.7 people per household.

BLSH, in a correction, there is nowhere to hide. "Gains in the long run". How long is your piece of string again?

To the contrary, one can quite easily hide from a correction. Just ignore it until it until passes.

....unless your BLSH, who obsesses over his latest spot valuation ;-)

Does nothing for the overhang that already existed though. When rents start dropping we'll know the market has turned. I haven't seen that anywhere yet..

Christchurch is ahead of the game, rents are down 5-10% over the last 4 years, now back to 2013 prices. Great news, I hope the rest of the country can share our luck before long.

Christchurch's luck heyzus wept.

Com'on mfd, it's obvious Chch's rent are down because of the oversupply of rentals following the EQ. The rents went through the roof right after the EQ as many houses were inhabitable and there was a shortage, then after several years many had to rebuild as part of their insurance payout and there is from 2013 onwards an excess of rentals. That will not transpire to other parts of NZ

I was being somewhat tongue in cheek, yes it's an example of what can happen when you actually get to grips with a supply problem (whether intentional or not). Regardless, the outcome is very pleasant when rent rises are rarely seen and finding a decent place to rent is now relatively easy.

I remember being given notice because the landlord wanted to move in after cashing in his other property. Turning up to open homes with 30 other people, rent bidding etc. Was a real nightmare and stressful trying to find a place in such a short window.

The answer to affordability is lower prices or higher wages, DTI restrictions would do it nicely. Its that simple.

If the Sydney and Melbourne markets continue to tank, and NZ stays high, I wonder what that will do to trans-Tasman immigration numbers? Mind you, there won't be jobs in Oz if that continues.
Up to 30% drops in higher end Sydney properties now, and still look pricey. https://amp.news.com.au/finance/real-estate/sydneys-biggest-real-estate-...

As per my comment on the other thread, there are signs houses are selling for less than the previous sale.. this will slowly start to increase the obvious cracks in the housing market

I think at the same time Jesus will be spotted drinking a matcha latte in Ponsonby.

clearly there is a push in the regions.. with NET migration LOSS of 3k from Auckland to the regions last year , there is a boost to the regions..

with the recent changes to Education (favouring the regions), suddenly the so called housing shortage will be non existent..

But there's another 60k arriving next year and 40k to Auckland so plenty more work to do. Plus the regions will eventually become less appealing as the house price to income equation worsens.

PP2F, are you saying Auckland has a net loss of population?

You should know what I'm referring to, as its been stated numerous times..

If you don't, not sure why you keep commenting with such authority

Our inward immigration numbers are still way too high for us to cope with, from a housing point of view .

Yes, they're poring into the coastal BoP. We've had the No Vacancy signs up for over a year now & they still keep coming.

LJM, are you in the accommodation business?

Lots of newly finished houses sitting empty in the BOP. How much of that will have been speculative development by soon to be retiring 'mum and dad' developers? Will all of them get out of the debt obligations they've taken on? There has been a 'baby boom' in development on the coast!

In Tauranga this weekend and the level of new builds is insane, whole new sub divisions and existing houses for sale all over the place. No housing shortage down here, whole new streets going in with houses that are for sale that are not even in my GPS as yet. If there is a housing crash its going to hit real hard down here.