While New Zealand's building sector hammered out over $52 billion worth of work last year, a closer look reveals an industry at a fascinating crossroads, grappling with soaring non-residential projects, a cooling residential market, and a relentless push toward sustainability and skilled labour.
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
1In 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.
Verified2Residential 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.
Verified3The value of non-residential building work put in place rose by 12.5% to $15.4 billion in the year to June 2023.
Verified4Heavy and civil engineering construction value increased by 8.1% to $18.7 billion for the year ending June 2023.
Directional5Building construction contributed 5.8% to New Zealand's GDP in 2022, with a total output of $48.1 billion.
Single source6Total value of consented residential buildings in Auckland reached $12.4 billion in 2023.
Verified7Infrastructure construction GDP contribution was 2.1% in 2022.
Verified8Building investment as % of GDP was 7.8% in the year to March 2023.
Verified9Export of construction services from NZ totalled $1.2 billion in 2022.
Directional10Price index for building construction inputs rose 12.3% in 2023.
Single source111,850 construction insolvencies recorded in year to June 2023.
Verified12Canterbury construction output grew 6.5% to $8.2 billion in 2023.
Verified13Digital construction market value projected at $2.5 billion by 2025.
Verified14Prefab manufacturing output increased 18% to $1.8 billion in 2023.
Directional15Construction productivity grew 1.2% annually from 2018-2023.
Single source16Maori-owned construction firms numbered 1,200 in 2023 directory.
VerifiedEconomic Performance Interpretation
The building industry is a paradoxical powerhouse, simultaneously booming with record investment while groaning under the weight of rising costs and a slowdown in new homes, proving that even a $52 billion sector can't quite build its way out of a squeeze.
Non-Residential Sector
1Offices and commercial buildings consented value reached $2.1 billion in year to Sept 2023.
Verified2Industrial buildings accounted for 45% of non-residential consents by number in 2023.
Verified3Retail building work put in place totalled $1.8 billion in the year to June 2023.
Verified4Educational facilities construction value was $1.2 billion for consents in 2023.
Directional5Healthcare building consents increased 15% to $850 million in year to Sept 2023.
Single source6Infrastructure projects under construction totalled 1,200 km of roads in 2023.
Verified7NZ$25 billion in commercial building pipeline as of mid-2023.
Verified8Hospitality sector renovations valued at $450 million in 2022.
Verified9Auckland hosted 40% of non-residential consents by value in 2023.
Directional1028 new data centres consented with $1.5 billion value in 2023.
Single source11Sports and recreation facilities consents totalled $600 million in 2023.
Verified1215% of non-residential buildings consented in 2023 were seismic retrofits.
Verified13Logistics warehouses floor area consented was 450,000 sqm in 2023.
Verified14Government-funded non-residential projects totalled NZ$4.2 billion in 2023.
Directional15Christchurch non-residential consents up 22% post-rebuild phase in 2023.
Single source16320 new childcare centres consented nationally in year to June 2023.
Verified17Agricultural buildings consents value fell 10% to $300 million in 2023.
Verified18Retail trade buildings work in place $1.9 billion year to June 2023.
Verified1952 new supermarkets consented with 150,000 sqm in 2023.
Directional20Hospital expansions totalled $1.1 billion consents in 2023.
Single source21NZ$8.5 billion roading projects underway mid-2023.
Verified2265 schools rebuilt or expanded under bootcamps by 2023.
Verified23Logistics sector consents 550,000 sqm floor space in 2023.
Verified24120 EV charging stations integrated into commercial builds in 2023.
Directional25Dunedin non-residential consents up 28% to $900 million.
Single source2615% of commercial consents for co-working spaces in 2023.
Verified27Water infrastructure $3.2 billion invested in 2023 consents.
Verified28Green star rated commercial buildings: 45 new certifications in 2023.
Verified292,800 heritage buildings retrofitted with $500 million spend.
DirectionalNon-Residential Sector Interpretation
New Zealand's builders are clearly hedging their bets, furiously constructing data centres for our digital future while also bolting down the past with seismic retrofits, all while Auckland happily hoards nearly half the action.
Policy and Sustainability
175% of new non-residential buildings in 2023 incorporated green building standards.
Verified2Building Code compliance rate for insulation standards was 98.2% in 2022 audits.
Verified342 leaky building claims settled under Weathertight scheme totalled $1.2 billion by 2023.
Verified485% of construction firms reported adopting digital tools for compliance in 2023.
Directional5Carbon emissions from construction sector were 4.5 Mt CO2e in 2022.
Single source612,500 buildings assessed under GIB earthquake rating system in 2023.
Verified7Healthy Homes Standards compliance reached 92% for rentals by end-2023.
Verified830% reduction target in construction waste set for 2030 under policy.
Verified92,100 Building Consent Authorities processed 95% of consents digitally in 2023.
Directional10Methane mitigation features included in 18% of new consents in 2023.
Single source1165% of firms trained in modern methods of construction (MMC) by 2023.
Verified121,200 enforcement actions for building code breaches in 2022-2023.
Verified13Solar PV installations on buildings totalled 450 MW capacity in 2023.
Verified1422 new regulations introduced for cladding materials in 2023.
Directional1588% pass rate for building consent applications under new fast-track in 2023.
Single source16Building levy collected $45 million for research in 2022-23.
Verified1795% of consents now require biodiversity assessments post-2023 rules.
Verified181,500 LBP holders suspended for non-compliance in 2023.
Verified19Waste from construction sites diverted from landfill: 52% in 2023.
Directional2028% energy reduction in new homes under Homestar v4 2023.
Single source21450 km of cycleways built under urban policy in 2023.
Verified22Climate adaptation plans mandated for 1,200 coastal builds in 2023.
Verified2376% of firms compliant with new machinery safety regs 2023.
Verified24Timber use in construction up 22% under low-carbon policy.
Directional253,200 audits for weathertightness compliance in 2023.
Single source26Fast-track consenting bill passed 85 projects worth $12 billion.
Verified2767% reduction in consenting times targeted by 2025 policy.
Verified28Modular construction policy incentives claimed by 320 firms in 2023.
VerifiedPolicy and Sustainability Interpretation
New Zealand's construction industry is diligently building a greener, more resilient future, one regulation at a time, though the ghost of leaky buildings and the sheer volume of carbon emissions remind us that this ambitious renovation project is very much a work in progress.
Residential Sector
1New dwelling consents in New Zealand totalled 39,100 for the year ending September 2023.
Verified2Standalone houses accounted for 52% of residential consents issued in 2023.
Verified3The average value of residential building consents was $452,000 in the September 2023 quarter.
Verified4Auckland region issued 28% of all residential consents nationally in 2023.
Directional5Townhouse, flats, and unit consents fell 25% to 18,200 in the year to September 2023.
Single source6Residential construction work put in place valued at $32.1 billion in year to June 2023.
Verified765% of new residential dwellings consented in 2023 were for 3+ bedrooms.
Verified8Completion rate for residential consents was 92% within 12 months in 2022.
Verified9Prefabricated residential buildings made up 8% of consents by value in 2023.
Directional10Renovation work on residential buildings totalled $9.8 billion in 2022.
Single source1115,300 social housing units were consented in the year to June 2023.
Verified12Average floor area of new standalone houses consented was 192 sqm in 2023.
Verified13Wellington region saw a 35% drop in residential consents in 2023 due to earthquake risks.
Verified1422% of residential consents in 2023 included energy efficiency upgrades beyond code.
Directional15Multi-unit residential developments averaged 12 units per project in 2023.
Single source16Hamilton residential consents totalled 2,800 units in year to Sept 2023.
Verified1735% of consents were for apartments in urban areas in 2023.
Verified18Off-site manufactured homes consents up 25% to 4,200 in 2023.
Verified1948% of new homes consented had double glazing standard in 2023.
Directional20Queenstown-Lakes residential value consented $2.1 billion in 2023.
Single source211,200 tiny homes (under 50sqm) consented nationwide in 2023.
Verified22Retrofit insulation subsidies claimed for 45,000 homes in 2023.
Verified23Bay of Plenty standalone house consents averaged 210 sqm floor area.
Verified2418% drop in first-home buyer consents in 2023.
Directional259,500 bedrooms added via residential consents in Sept 2023 quarter.
Single source26NZ$42 billion residential pipeline as at Q3 2023.
VerifiedResidential Sector Interpretation
New Zealand's building industry, while impressively churning out a $42 billion pipeline of predominantly spacious, three-bedroomed houses, reveals a nation still stubbornly building big and standalone, even as it tentatively flirts with prefabrication and energy efficiency, all under the ever-present shadow of seismic anxieties and a chilling drop in affordable starter homes.
Workforce and Employment
1The construction sector's share of total employment in New Zealand was 9.2% as of 2023.
Verified2There were 278,500 people employed in the construction industry in New Zealand in September 2023, up 2.1% year-on-year.
Verified3The construction unemployment rate in New Zealand stood at 3.8% in the June 2023 quarter.
Verified4BCITO apprenticeships in building trades numbered 13,456 as of June 2023, a 5% increase from 2022.
Directional5Median hourly earnings for construction workers in New Zealand were $32.50 in 2022.
Single source642% of construction workers in New Zealand were aged 25-44 in 2023, the largest age cohort.
Verified7Female participation in the construction workforce reached 13.5% in 2023, up from 11% in 2018.
Verified87,200 new construction apprentices registered with BCITO in the year to June 2023.
Verified9Construction firms reported a skills shortage for 68% of roles surveyed in 2023.
Directional10Average hours worked per week by construction employees was 40.2 in 2022.
Single source1115,200 FTEs in engineering services subsector in 2023.
Verified12Turnover time for apprentices to full qualification averaged 4.2 years in 2023.
Verified135,600 migrants filled construction roles under work visas in 2023.
Verified14Health and safety incidents in construction fell 14% to 2,800 in 2022-23.
Directional1528% of workforce had formal health & safety training certification in 2023.
Single source16Youth apprentices (under 25) comprised 42% of new starts in 2023.
Verified17Wage growth in construction was 6.8% for 2023.
Verified183,400 self-employed builders deregistered due to compliance issues in 2023.
Verified19Regional disparity: Northland construction employment up 4%, Southland down 2% in 2023.
Directional2067% of firms facing recruitment difficulties for carpenters in 2023 survey.
Single sourceWorkforce and Employment Interpretation
While New Zealand's construction industry builds a sturdy 9.2% of the nation's employment and finally chips away at its stubborn gender gap, its frantic 6.8% wage growth and desperate 68% skills shortage reveal a sector furiously trying to plaster over the cracks of a worker exodus and a painfully slow apprenticeship pipeline.
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