November 21st, 2024
New Zealand has seen a significant drop in the number of new homes consented in the year ended March 2024, with figures declining by 25% compared to the previous year, according to Stats NZ. The total number of new homes consented stood at 35,236, reflecting a marked decrease from 51,015 in the year ended May 2022.
The data shows a particularly steep decline in multi-unit homes, which includes townhouses, apartments, retirement village units, and flats.
Detailed breakdown: Stand-alone and multi-unit homes
The year witnessed 15,166 stand-alone houses being consented, which is down 23% from the previous year. Multi-unit homes were even more affected, with a 26% decline, totalling 20,070 units. Notably, the number of apartments consented has dropped to its lowest in nearly eight years, with only 2,188 apartments approved, a 48% decrease. Retirement village units also saw a similar reduction.
Regional impact
All regions in New Zealand recorded a decrease in new home consents. Auckland, Canterbury, Waikato, and Wellington were the most affected areas, with Auckland experiencing a 28% drop to 14,699 consents and Wellington the steepest fall at 35%, amounting to only 2,358 new homes.
Quarterly insights
Looking at the quarterly data, there were 7,717 new homes consented in the March 2024 quarter, marking a 21% decrease from the March 2023 quarter. The seasonally adjusted figures, however, show a slight recovery with a 1.0% rise from the December 2023 quarter.
This downturn in housing consents indicates a cooling phase in New Zealand’s construction sector, likely influenced by economic factors affecting both demand and supply in the housing market.