Key Takeaways
- In the year ending June 2023, the total value of building construction work put in place in New Zealand was $52.3 billion, up 4.2% from the previous year.
- Residential building consents issued in New Zealand for the September 2023 quarter totalled 9,248, a decrease of 18.7% compared to the September 2022 quarter.
- The value of non-residential building work put in place rose by 12.5% to $15.4 billion in the year to June 2023.
- The construction sector's share of total employment in New Zealand was 9.2% as of 2023.
- There were 278,500 people employed in the construction industry in New Zealand in September 2023, up 2.1% year-on-year.
- The construction unemployment rate in New Zealand stood at 3.8% in the June 2023 quarter.
- New dwelling consents in New Zealand totalled 39,100 for the year ending September 2023.
- Standalone houses accounted for 52% of residential consents issued in 2023.
- The average value of residential building consents was $452,000 in the September 2023 quarter.
- Offices and commercial buildings consented value reached $2.1 billion in year to Sept 2023.
- Industrial buildings accounted for 45% of non-residential consents by number in 2023.
- Retail building work put in place totalled $1.8 billion in the year to June 2023.
- 75% of new non-residential buildings in 2023 incorporated green building standards.
- Building Code compliance rate for insulation standards was 98.2% in 2022 audits.
- 42 leaky building claims settled under Weathertight scheme totalled $1.2 billion by 2023.
Construction growth continues despite fewer residential starts and a significant skills shortage.
Economic Performance
- In the year ending June 2023, the total value of building construction work put in place in New Zealand was $52.3 billion, up 4.2% from the previous year.
- Residential building consents issued in New Zealand for the September 2023 quarter totalled 9,248, a decrease of 18.7% compared to the September 2022 quarter.
- The value of non-residential building work put in place rose by 12.5% to $15.4 billion in the year to June 2023.
- Heavy and civil engineering construction value increased by 8.1% to $18.7 billion for the year ending June 2023.
- Building construction contributed 5.8% to New Zealand's GDP in 2022, with a total output of $48.1 billion.
- Total value of consented residential buildings in Auckland reached $12.4 billion in 2023.
- Infrastructure construction GDP contribution was 2.1% in 2022.
- Building investment as % of GDP was 7.8% in the year to March 2023.
- Export of construction services from NZ totalled $1.2 billion in 2022.
- Price index for building construction inputs rose 12.3% in 2023.
- 1,850 construction insolvencies recorded in year to June 2023.
- Canterbury construction output grew 6.5% to $8.2 billion in 2023.
- Digital construction market value projected at $2.5 billion by 2025.
- Prefab manufacturing output increased 18% to $1.8 billion in 2023.
- Construction productivity grew 1.2% annually from 2018-2023.
- Maori-owned construction firms numbered 1,200 in 2023 directory.
Economic Performance Interpretation
Non-Residential Sector
- Offices and commercial buildings consented value reached $2.1 billion in year to Sept 2023.
- Industrial buildings accounted for 45% of non-residential consents by number in 2023.
- Retail building work put in place totalled $1.8 billion in the year to June 2023.
- Educational facilities construction value was $1.2 billion for consents in 2023.
- Healthcare building consents increased 15% to $850 million in year to Sept 2023.
- Infrastructure projects under construction totalled 1,200 km of roads in 2023.
- NZ$25 billion in commercial building pipeline as of mid-2023.
- Hospitality sector renovations valued at $450 million in 2022.
- Auckland hosted 40% of non-residential consents by value in 2023.
- 28 new data centres consented with $1.5 billion value in 2023.
- Sports and recreation facilities consents totalled $600 million in 2023.
- 15% of non-residential buildings consented in 2023 were seismic retrofits.
- Logistics warehouses floor area consented was 450,000 sqm in 2023.
- Government-funded non-residential projects totalled NZ$4.2 billion in 2023.
- Christchurch non-residential consents up 22% post-rebuild phase in 2023.
- 320 new childcare centres consented nationally in year to June 2023.
- Agricultural buildings consents value fell 10% to $300 million in 2023.
- Retail trade buildings work in place $1.9 billion year to June 2023.
- 52 new supermarkets consented with 150,000 sqm in 2023.
- Hospital expansions totalled $1.1 billion consents in 2023.
- NZ$8.5 billion roading projects underway mid-2023.
- 65 schools rebuilt or expanded under bootcamps by 2023.
- Logistics sector consents 550,000 sqm floor space in 2023.
- 120 EV charging stations integrated into commercial builds in 2023.
- Dunedin non-residential consents up 28% to $900 million.
- 15% of commercial consents for co-working spaces in 2023.
- Water infrastructure $3.2 billion invested in 2023 consents.
- Green star rated commercial buildings: 45 new certifications in 2023.
- 2,800 heritage buildings retrofitted with $500 million spend.
Non-Residential Sector Interpretation
Policy and Sustainability
- 75% of new non-residential buildings in 2023 incorporated green building standards.
- Building Code compliance rate for insulation standards was 98.2% in 2022 audits.
- 42 leaky building claims settled under Weathertight scheme totalled $1.2 billion by 2023.
- 85% of construction firms reported adopting digital tools for compliance in 2023.
- Carbon emissions from construction sector were 4.5 Mt CO2e in 2022.
- 12,500 buildings assessed under GIB earthquake rating system in 2023.
- Healthy Homes Standards compliance reached 92% for rentals by end-2023.
- 30% reduction target in construction waste set for 2030 under policy.
- 2,100 Building Consent Authorities processed 95% of consents digitally in 2023.
- Methane mitigation features included in 18% of new consents in 2023.
- 65% of firms trained in modern methods of construction (MMC) by 2023.
- 1,200 enforcement actions for building code breaches in 2022-2023.
- Solar PV installations on buildings totalled 450 MW capacity in 2023.
- 22 new regulations introduced for cladding materials in 2023.
- 88% pass rate for building consent applications under new fast-track in 2023.
- Building levy collected $45 million for research in 2022-23.
- 95% of consents now require biodiversity assessments post-2023 rules.
- 1,500 LBP holders suspended for non-compliance in 2023.
- Waste from construction sites diverted from landfill: 52% in 2023.
- 28% energy reduction in new homes under Homestar v4 2023.
- 450 km of cycleways built under urban policy in 2023.
- Climate adaptation plans mandated for 1,200 coastal builds in 2023.
- 76% of firms compliant with new machinery safety regs 2023.
- Timber use in construction up 22% under low-carbon policy.
- 3,200 audits for weathertightness compliance in 2023.
- Fast-track consenting bill passed 85 projects worth $12 billion.
- 67% reduction in consenting times targeted by 2025 policy.
- Modular construction policy incentives claimed by 320 firms in 2023.
Policy and Sustainability Interpretation
Residential Sector
- New dwelling consents in New Zealand totalled 39,100 for the year ending September 2023.
- Standalone houses accounted for 52% of residential consents issued in 2023.
- The average value of residential building consents was $452,000 in the September 2023 quarter.
- Auckland region issued 28% of all residential consents nationally in 2023.
- Townhouse, flats, and unit consents fell 25% to 18,200 in the year to September 2023.
- Residential construction work put in place valued at $32.1 billion in year to June 2023.
- 65% of new residential dwellings consented in 2023 were for 3+ bedrooms.
- Completion rate for residential consents was 92% within 12 months in 2022.
- Prefabricated residential buildings made up 8% of consents by value in 2023.
- Renovation work on residential buildings totalled $9.8 billion in 2022.
- 15,300 social housing units were consented in the year to June 2023.
- Average floor area of new standalone houses consented was 192 sqm in 2023.
- Wellington region saw a 35% drop in residential consents in 2023 due to earthquake risks.
- 22% of residential consents in 2023 included energy efficiency upgrades beyond code.
- Multi-unit residential developments averaged 12 units per project in 2023.
- Hamilton residential consents totalled 2,800 units in year to Sept 2023.
- 35% of consents were for apartments in urban areas in 2023.
- Off-site manufactured homes consents up 25% to 4,200 in 2023.
- 48% of new homes consented had double glazing standard in 2023.
- Queenstown-Lakes residential value consented $2.1 billion in 2023.
- 1,200 tiny homes (under 50sqm) consented nationwide in 2023.
- Retrofit insulation subsidies claimed for 45,000 homes in 2023.
- Bay of Plenty standalone house consents averaged 210 sqm floor area.
- 18% drop in first-home buyer consents in 2023.
- 9,500 bedrooms added via residential consents in Sept 2023 quarter.
- NZ$42 billion residential pipeline as at Q3 2023.
Residential Sector Interpretation
Workforce and Employment
- The construction sector's share of total employment in New Zealand was 9.2% as of 2023.
- There were 278,500 people employed in the construction industry in New Zealand in September 2023, up 2.1% year-on-year.
- The construction unemployment rate in New Zealand stood at 3.8% in the June 2023 quarter.
- BCITO apprenticeships in building trades numbered 13,456 as of June 2023, a 5% increase from 2022.
- Median hourly earnings for construction workers in New Zealand were $32.50 in 2022.
- 42% of construction workers in New Zealand were aged 25-44 in 2023, the largest age cohort.
- Female participation in the construction workforce reached 13.5% in 2023, up from 11% in 2018.
- 7,200 new construction apprentices registered with BCITO in the year to June 2023.
- Construction firms reported a skills shortage for 68% of roles surveyed in 2023.
- Average hours worked per week by construction employees was 40.2 in 2022.
- 15,200 FTEs in engineering services subsector in 2023.
- Turnover time for apprentices to full qualification averaged 4.2 years in 2023.
- 5,600 migrants filled construction roles under work visas in 2023.
- Health and safety incidents in construction fell 14% to 2,800 in 2022-23.
- 28% of workforce had formal health & safety training certification in 2023.
- Youth apprentices (under 25) comprised 42% of new starts in 2023.
- Wage growth in construction was 6.8% for 2023.
- 3,400 self-employed builders deregistered due to compliance issues in 2023.
- Regional disparity: Northland construction employment up 4%, Southland down 2% in 2023.
- 67% of firms facing recruitment difficulties for carpenters in 2023 survey.
Workforce and Employment Interpretation
Sources & References
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