Multi-unit homes and stand-alone houses both hit hard
The number of new homes consented in New Zealand recorded a substantial 25% decrease in the year ending December compared to the previous year, according to the latest figures released by Stats NZ.
The total new homes consented dropped from the peak of 49,538 in 2022, the highest on record, to 37,239 in 2023, said Michael Heslop, construction and property statistic manager at Stats NZ.
Multi-unit homes and stand-alone houses hit hard
In the year to December, multi-unit homes experienced a 23% decline, with 21,564 consents. Of the multi-homes consented, 16,779 were townhouses, flats, and units, (a 19% decrease compared to the year ending December 2022) 2,518 were apartments (-43%), and 2,267 were retirement village units (-23%).
The number of stand-alone houses also fell by 27%, reaching 15,675 consents, marking the first year where the consented townhouses, flats, and units surpassed stand-alone houses.
Regional impact
The decline in home consents was widespread across the North and South Islands.
In the North Island, there was a 26% drop with 26,881 new homes consented, while the South Island recorded a 22% decrease with 10,357 new homes consented.
All regions, except Gisborne and Hawke’s Bay, consented fewer new homes compared to the previous year. Auckland (15,488), Canterbury (6,959), Waikato (3,548), and Wellington (2,247) were the top four regions with the most consents, despite experiencing declines ranging from 22% to 37%.
Impact on residents
The economic implications of the sharp decrease in new home consents are evident in the lowered number of homes consented per 1,000 residents, dropping from 9.7 in December 2022 to 7.2 in December. Canterbury led with the highest number of homes consented per 1,000 residents at 10.4, followed by Auckland at 8.9, Heslop said.
Quarterly numbers reflect ongoing trend
The decline in new home consents continued into the December quarter, with a 27% decrease compared to the same quarter in 2022. Seasonally adjusted terms indicated a 3.4% drop in new homes compared to the previous quarter, following a 13% decline in the September 2023 quarter, Stats NZ reported.
To read the Stats NZ media release, click here.
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