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The number of new homes being consented has declined by a third over the last two years

Property / news
The number of new homes being consented has declined by a third over the last two years
Builder

The number of building consents issued for new homes was at a six year low in the 12 months to November.

According to Statistics NZ, 33,609 building consents were issued for new dwellings in the year to November, down from 38,209 (-12.0%) in the year to November 2023 and down from 50,209 (-33.1%) compared to the year to November 2022.

That means the number of new dwellings consented has declined by a third over the two years to November, and is now at its lowest point for that period since 2018.

The decline has affected all dwelling types, with consents for new apartments down -58.8% over the last two years, followed by retirement village units -41.7%, townhouses and home units -32.2% and stand alone houses -27.6%.

The total estimated value of building work consented (excluding the cost of land) for new dwellings consented in the 12 months to November this year was $15.33 billion,  down -24.9% compared to two years ago.

Around the main urban regions, new dwelling consents in the year to November were down -36% in Auckland compared to two years previously, -41% in Waikato, -23.5% in Bay of Plenty, -51.7% in Wellington Region, -26.7% in Canterbury and -8.3% in Otago.

The decline in planned building work didn't just affect residential construction, the total floor area of new, non-residential buildings consented, declined from 3,139,000 square metres in the year to November 2022, to 2,730,000 in the year to November 2023 and 2,234,000 in the year to November 2024, a decline of 28.8% over the last two years.

The two interactive charts below show the monthly trends in residential consents.

Building consents - type

Select chart tabs

Building consents - residential

Select chart tabs

                                                                                           

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11 Comments

And just like the GFC....another generation of young qualified tradesman go West.

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Did they though? We had an Earthquake and a labour shortage.

Then and now, the larger problem is we don't have anywhere near enough entering the sector. Much more lucrative to work in an office and complain how much it costs to build anything.

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3

A lot did leave during the GFC and a lot are leaving now. Not many come back and those that do don't want to go back to working in a trade. Now we are getting to the point where a lot are reaching retirement and since we didn't train a lot of apprentices in the 90's there aren't many to train the latest cohort.

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1

Alot heading south to. Every second trademen/women in Otago/ Lakes is from Auckland and the other half is from overseas

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0

oh Wellington 

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https://www.stats.govt.nz/news/home-consents-up-4-8-percent-in-the-mont…

StatsNZ headlines spins the story in a much different light.....

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2

So in conclusion, up in November and still elevated compared to the last few decades?

More into the property market mincer it is.

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2

There will always be idiots who keep building into a bust, because they think they're different.

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0

Different as in good operators building great houses who have multiple years of experience building through good and tough times profitably, with a good customer relationship ?

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4

And usally good tradesman not fly by nighters

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So with the reduction in builders we'll be going back to which year did you want your new house or major reno. I may soon find out if my intended project within the next year, a fancy sleep out, eventuates.

I'm hoping Chris Bishops  granny flat proposals to bypass local council as much as possible and particularly the local council's  ridiculous RMA/BC requirements, come to fruition.

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