Source: Quotable Value
Thursday, 29 October 2026
Construction cost growth remains relatively modest, despite another sharp rise in diesel prices.
That is according to the latest QV CostBuilder monthly construction cost update, which recorded more than 7,000 data changes across Auckland, Wellington, Christchurch, Dunedin, Hamilton and Palmerston North.
It showed that diesel prices increased by an average of 19% since last month’s update and are now 76.2% higher than they were in February.
Yet average construction trade rates have increased by just 0.1% in the last month, with increases and decreases across different products and trades largely offsetting one another.
Fuel-intensive areas of construction recorded more noticeable increases, with excavation up 3.9%, while piling and demolition both increased by 0.6%.
QV CostBuilder quantity surveyor Martin Bisset said rising fuel costs were being felt in parts of the sector but had not translated into broad-based construction cost inflation.
“What won’t surprise anyone who’s had to fill up their truck recently is that diesel has moved sharply higher again. This hasn’t directly translated into broad-based construction cost inflation.”
“We’re seeing that pressure most clearly in the parts of the job that use the most fuel, while many other material and trade rates have moved much more modestly overall.”
Other notable price rises this month included processed timber products (6.2%), medium-density fibreboard (2.8%), reinforcing (2.7%), roofing and cladding (1.6%), and insulation (1.1%).
But not everything moved higher. Adhesives and sealants fell by 4.2%, kitchen-related costs were also down 1.2%, and structural timber reduced by 0.2%.
“Although construction cost inflation has been quite slow overall, there’s still quite a lot of movement going on beneath the surface.”
“Some products are moving up relatively sharply, some are coming back, and others are barely changing at all. Taken together, these movements are largely cancelling each other out.”
As a result, Mr Bisset said anyone budgeting for construction work should continue to allow for movement in costs, especially in more fuel-sensitive parts of a project.
“The overall picture is relatively steady, but that doesn’t mean every part of a build is standing still. Where your costs will move most depends heavily on what you’re building, what materials you need, and how exposed the job is to fuel.”
QV CostBuilder is New Zealand’s most comprehensive construction cost database, encompassing everything from building costs per square metre for homes, schools, and offices, to the supply and install cost of more than 10,000 items, labour rates, labour constants, and more.