Multi-unit consents fall sharply, but stand-alone houses show growth
New Zealand recorded 2,850 new home consents in October 2024, a 6.9% decrease compared to October 2023, according to Stats NZ.
This decline was largely driven by a sharp drop in multi-unit home consents, which fell 18% year-on-year. These homes include townhouses, apartments, and retirement units.
The breakdown of multi-unit home consents for October 2024 is as follows:
- Townhouses, flats, and units: 1,174 (down 15%)
- Apartments: 183 (down 24%)
- Retirement village units: 130 (down 29%)
In contrast, stand-alone houses experienced growth, with 1,363 consents issued in October, an 8.6% increase compared to October 2023.
“Since July 2024, the number of stand-alone houses consented each month has been higher than the same month of the previous year,” Stats NZ spokesperson Michael Heslop said.
Annual trends show continued decline
For the year ending October, a total of 33,467 homes were consented, down 16% compared to the previous year. Stand-alone houses fell by 2.8% (15,883 consents), while multi-unit homes dropped by 25% (17,584 consents).
Despite multi-unit homes being consented in greater numbers than stand-alone houses since 2022, the gap is narrowing, with the latter showing more resilience.
Economist analysis: Signs of stabilisation
Westpac NZ senior economist Satish Ranchhod (pictured above) noted that while residential consent issuance has fallen 16% annually, the downturn appears to have found a base.
“Smoothing through the normal month-to-month swings, the downturn in consent issuance has now found a base, with consent numbers effectively tracking sideways since the start of the year,” Ranchhod said.
The Westpac economist pointed to easing pressures, including falling interest rates, which could support the housing market in the longer term. However, he cautioned that any meaningful recovery in consents is unlikely before mid-2025.
Commercial building activity remains subdued
The non-residential sector also experienced a downturn, with cautious investment continuing to suppress new development.
While retail space remains particularly weak, the industrial and office segments are seeing some ongoing activity, including refurbishments, Stats NZ data showed.
As borrowing costs drop and buyer interest increases, experts predict a gradual recovery in both residential and commercial construction. However, the effects are expected to unfold slowly, with significant growth anticipated only in the latter half of 2025.
Stats NZ previously reported a decline in the number of new homes consented in New Zealand in the year ended July.
For the latest Stats NZ figures, click here. Read the Westpac insights in full here.
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