Lower interest rates tempt developers to restart shelved projects
New Zealand’s residential construction pipeline is strengthening, with new dwelling consents rising and multi‑unit projects leading the way, according to Stats NZ.
Stats NZ reported 35,969 new homes consented in the year to November 2025, up 7% on the year to November 2024.
“In the year to November 2025 multi-unit homes drove the increase in new homes consented. That’s reflected in the number of townhouses, flats, and units being consented,” economic indicators spokesperson Michelle Feyen (pictured left) said.
Over the year to November 2025, compared with the previous year, there were:
• 15,643 townhouses, flats and units (up 9.6%)
• 2,647 apartments (up 49%)
• 1,291 retirement village units (down 26%)
The number of stand‑alone house consents was 16,388, up 3.6% over the year.
Regionally, Auckland continued to account for a large share of new home consents, particularly for townhouses, flats and units, with Canterbury, Otago, Wellington and Waikato also contributing to growth.
November data show continued monthly lift
In November 2025 alone, 3,517 new homes were consented, up 14% compared with November 2024. The monthly increase reflected growth in both stand‑alone houses and multi‑unit homes.
Compared with November 2024, November 2025 saw:
• 1,607 stand‑alone houses (up 15%)
• 1,596 townhouses, flats and units (up 11%)
• 130 retirement village units (up 73%)
• 184 apartments (down 1.1%)
In seasonally adjusted terms, the number of new homes consented rose 2.8% in November 2025, following a 0.7% fall in October 2025.
Westpac: Construction to ‘gradually push higher’ in 2026
Westpac NZ senior economist Satish Ranchhod (pictured right) said the latest data point to a clear upward trend in dwelling approvals.
“Dwelling consent issuance has continued to trend higher, and we expect to see residential building activity gradually pushing higher over the year ahead,” Ranchhod said.
Dwelling consent numbers rose 2.8% in November, with the total number of homes consented over the past 12 months “rising back up to just shy of 36,000 – its highest level in more than a year.”
Ranchhod said the rise is being underpinned by a lift in both stand‑alone homes and medium‑density developments such as townhouses and apartments, with much of the planned work in Auckland and further increases in Wellington, Canterbury, and Otago.
“Talking to builders and developers around the country in recent months, we’re still hearing reports of tough trading conditions. But we’re also hearing some increased optimism about the year ahead as a result of lower interest rates. That’s seen developers starting to bring more projects to market.”
Home building is likely to “remain around current levels in the near term”. However, with the pipeline of new projects now lifting, Westpac expects residential construction to turn higher over 2026.
Ranchhod cautioned that “we don’t expect a return to the boom times that we saw in the wake of the pandemic,” noting that low population growth and sizeable increases in the housing stock in recent years are “still weighing on house price growth and will also be a dampener on the pace of home building.”
For more details and insights, read the Stats NZ and Westpac reports.
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