Multi-unit consents fall sharply, though standalone house approvals show resilience
New Zealand’s home construction activity dipped sharply in April 2025, with 2,418 new dwellings consented – a 17% drop compared to April 2024, according to new Stats NZ figures.
“The drop in number of new homes consented in April 2025 may have been impacted by the timing of Easter weekend and Anzac Day, with people potentially taking time off in between,” said Michelle Feyen (pictured left), economic indicators spokesperson at Stats NZ.
The monthly decline included:
- 1,148 stand-alone houses (down 15% year-on-year)
- 1,270 multi-unit homes (down 19%)
Multi-unit approvals included 1,105 townhouses (down from 1,296), 80 apartments (down from 98), and 85 retirement village units (down from 178) compared to April 2024.
Seasonally adjusted figures also painted a weaker picture. New home consents fell 16% from March 2025, reversing the 11% rise seen the previous month.
Annual trend steadies despite monthly fall
In the 12 months to April 2025, 33,554 new dwellings were consented – down 5.2% annually. However, stand-alone house consents rose 2.4% to 15,769, while multi-unit consents declined 11% to 17,785, Stats NZ figures showed.
Among the multi-unit segment:
- Townhouses, flats, and units fell 12% to 14,192
- Apartments dipped 1.8% to 2,090
- Retirement village units dropped 14% to 1,503
Westpac: Signs of a bottoming out
Westpac senior economist Satish Ranchhod (pictured right) said that despite the April downturn, “the longer-term trend has found a floor.”
“Consent issuance has been running at those sorts of levels for a year now,” he said. “Notably, the earlier downturns in both stand-alone homes and townhouses have been arrested.”
Ranchhod said the month’s 16% drop in consents was largely driven by apartment volatility and was within expectations.
“Importantly, the seeds of an eventual recovery are in place,” he said. “Financing costs have fallen sharply over the past year. The RBNZ has now cut the OCR 225bps and some further modest reduction looks likely.”
Gradual recovery expected
With home sales returning to average levels and house prices beginning to rise, Ranchhod expects “a lift in the number of new developments consented through the latter part of this year, with a lift in building activity to follow that.”
However, he noted the recovery would be gradual due to a large increase in housing supply over recent years, which could limit future demand for new builds.
Commercial consents remain mixed
Stats NZ also highlighted uneven trends in non-residential construction:
- Retail space development remains limited
- Industrial and storage projects have eased
- Office development is declining, though refurbishment spending remains strong
“Feedback we’ve heard from businesses indicates that they remain cautious about significant new capital expenditure in the near term, reflecting continued uncertainty about the economic outlook,” Ranchhod said.
For more information, read the latest Stats NZ figures and Westpac insights.
