Source: New Zealand Government
The Government is focused on reducing sky-high construction costs to make it more affordable to build a home, Building and Construction Minister Chris Penk says.
Stats NZ data shows the cost of building a house has increased by 41 per cent since 2019, making housing even more unaffordable for Kiwi families.
“Further analysis shows building costs are consistently higher in New Zealand than several overseas jurisdictions, with comparisons showing the cost to build a standalone house is around 50 per cent more expensive than it is in Australia. This must change.
“Not only do high building costs make it harder for families trying to purchase their first home, but they have far-reaching economic and social consequences such as higher mortgage repayment costs, higher rents, and increased demand for social housing.
“Tackling out-of-control construction prices is one of the keys to reducing the cost of living and providing Kiwis with the high-quality, affordable housing they deserve.
“Kiwis pay too much for building materials. We will ensure more high-quality building products are approved to increase competition, lower building material costs, and support our resilience to supply-chain disruptions.”
“This Government will reform the building consent system by streamlining the consent process, making product substitutions easier, and clarifying roles and responsibilities within the system. Removing unnecessary barriers and giving greater certainty to businesses means better productivity and less delays when building a home.
Notes to the Editor.
Overseas comparison has been provided by MBIE and is sourced from the most recent Stats NZ and the Australian Bureau of Statistics data using value of building work consented per square metre for a standalone house ($ NZD).
2022
Australia – $1,743
New Zealand – $2,591
