Multi-unit developments may be contributing to the rise
Auckland has consented 14,032 new homes in the year ended June 2019 – the most ever consented in a year.
According to Stats NZ, the number of new homes consented in the region increased to 13% from last June and is more than four times the lows seen in 2009.
Melissa McKenzie, construction statistics manager, said that growth in consents had been driven by multi-unit developments like apartments and townhouses – developments which now account for half of all consented dwellings in Auckland.
“Over 14,000 new homes were consented in Auckland over the last year, exceeding the previous peak of around 13,000 in the mid-1970s. Since then, Auckland’s population has doubled and is now about 1.7 million,” said McKenzie.
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However, the total of all new dwellings consented across most regions in New Zealand still lags behind the all-time highs – with only 34,761 new dwellings across the country compared to the all-time peak of 40,025 last year.
“Apart from Auckland, the number of new homes consented across most regions in New Zealand still lags behind those seen in the mid-1970s, particularly in the lower North Island,” said McKenzie.
Satish Ranchhod, senior economist at Westpac, commented that underlying the increase in nationwide issuance is the strong increase in Auckland consents.
“While population growth in the region remains strong and an extended period of rapid building will be required, the region is now consenting enough homes to keep up with population growth,” Ranchhod told Good Returns NZ.
“We think a peak in the nationwide construction cycle is approaching and expect this to occur in 2020. Building levels are still expected to remain elevated for some time. But after this year, we don’t expect to see the same large increases in nationwide construction-related spending and employment that we did in recent years.”
