Strong growth in building spreads

The ongoing strong growth in residential building construction seen today in the latest figures from Statistics New Zealand confirm the Government’s housing supply initiatives are working, Building and Housing Minister Dr Nick Smith says.

“The 27,745 new homes consented in the year to February is the highest in a decade. The interesting feature of these latest figures is that the housing boom that started in Christchurch followed by Auckland is now spreading to other parts of the country like the Waikato, Bay of Plenty, Nelson/Tasman and Queenstown,” Dr Smith says.

“I am particularly encouraged by the February figures for Auckland of 787 for the month, up 50 per cent from 528 in February 2015, and more than three times the low of 220 in 2009. We are maintaining growth of 25 per cent per annum growth in the house build rate since the Housing Accord was signed with Auckland Council, and sustaining the longest and strongest period of growth in the city’s history.

“The Government is keeping its foot on the accelerator to ensure this positive momentum continues. The Government is continuing to free up more land faster through the Auckland Housing Accord, together with the council. We have also put in place initiatives to constrain building materials costs, rein in development contributions, cut compliance costs and invest in improved sector productivity. Our new $435 million HomeStart support package, which came into effect last April, is helping drive growth as well as giving a kick-start for first home buyers.

“The next steps in the Government’s programme include advancing new housing on Crown-owned land in Auckland, supporting the Auckland Council in the completion of the new Auckland Unitary Plan, consulting on a new Urban Development National Policy Statement, and reforming the Resource Management Act to address the long-term issues affecting housing supply and affordability.”