It’s the first time that they have breached the 37,000 mark since the mid-1970s
Housing consents have hit the highest level since 1974, according to Statistics New Zealand’s latest report.
The report revealed a total of 37,010 residential consents issued in the year to November 2019 – up 13% on the previous year and 60% above historical averages. It is also the first time that consents have breached the 37,000 mark since the mid-1970s. The record still stands at 40,025 consents in the year to February 1974, when the population was much lower.
Mark Smith, senior economist at ASB, said the increase in consent was broadly based – with only Northland, Marlborough, and Nelson seeing consents running below historical averages while issuance was close to double the average in Auckland and Otago.
Read more: Statistics reveal ongoing growth in consents nationwide
Smith noted that the figure was nearly two-thirds above historical averages in Waikato, Wellington, and Manawatu.
“We expect solid population growth, low mortgage rates and the strengthening market for existing dwellings to support building demand over the year ahead, and will be closely monitoring building costs for signs of pricing and resourcing pressures,” he said, as reported by Stuff.co.nz.
He predicts rise in house prices over the year ahead, which could also lift construction costs – already up 7.7% year on year.
“Higher house prices typically boost demand for new builds and we expect dwelling construction to remain elevated at high levels over the year ahead,” Smith continued. “The fall in pricing intentions for the building sector signalled by today's Quarterly Survey of Business Opinion (QSBO) is especially welcome.”
