Consents for standalone homes declining in New Zealand: Stats NZ report

Highlights

• Building consents for multi-unit homes are increasing in New Zealand.
• In 2022, 50,732 homes were consented to, according to Stats NZ.
• Out of these consented homes, 55% were townhouses and apartments.

New Zealand is witnessing an increasing number of building consents for multi-unit homes. Stats NZ figures released recently (1 November 2022) show that there were 50,732 homes consented in the year ended September 2022, an increase of around  7% on the same time in 2021..

According to the data, a total of 4,600 consents were issued in September, which is the highest  since March. This marks an increase of 3.8%, as per the official statistics agency of New Zealand.

Of the total consented homes, multiunit homes, made up around 55% of the consents in the year to September. The multi-unit homes include townhouses, apartments, etc.

As reported, the multiunit homes kept the consents high, and standalone homes dropped by 11%.

Standalone houses trending down

The shift away from standalone houses has increased in 2022. The reasons for the trend are that the high interest and mortgage rates are making it difficult for Kiwis to opt for standalone houses.

The other reasons for the trend could be greater demand for dwellings in urban areas and a decrease in the size of households.

Region-wise variations

In the Auckland region, a total of 16,763 consents were for multiunits, which are three-quarters of all the consents in the region. The total number of consents in the region was 21,985.

Even in Canterbury consents were high at 8,718, up 18%. The Waikato and Wellington regions showed a downward trend, down 3% and 10%, respectively.

Auckland had more consents than most regions as housing affordability and density of population are important factors.

The report stated that, overall, Auckland and Canterbury reached new annual records in the total number of houses consented. In the construction sector, several new projects are expected to come to the market. The number of townhouses and apartments consented to is up 30% over the last 12 months. 

Further, the consents for townhouses and apartments more than offset the drop in consent for standalone houses.