Building boom returns with surge in multi-unit consents
New Zealand recorded 3,747 new homes consented in September 2025, a 27% jump from a year earlier, according to Stats NZ.
After seasonal adjustment, consents rose 7.2% from August, pointing to renewed housing momentum.
“September recorded the highest number of homes consented in more than two years,” said Michelle Feyen, Stats NZ economic indicators spokesperson. “Residential construction has declined in recent years, but home consents have been trending up through 2025 and have strengthened in recent months, suggesting a possible lift in future building activity.”
Multi-unit developments drove the growth, with 2,146 multi-unit homes consented (up 37%) compared with 1,601 stand-alone houses (up 16%). Within multi-units, townhouses, flats, and units climbed 50%, apartments rose 57%, while retirement village units dropped 61%.
Quarterly and annual gains signal recovery
In the September 2025 quarter, 10,079 homes were consented — 9.8% more than a year earlier. After seasonal adjustment, the total reached 9,381, the highest since June 2023.
Annually, 34,882 new homes were consented in the year to September 2025, up 3.6%. Multi-unit homes led the increase (up 5.6%), with apartments up 49% and townhouses up 5.3%. Stand-alone houses edged higher by 1.3%.
“Auckland and Otago contributed to most of the annual increase in consented multi-unit homes, with Wellington also rising,” Feyen said.
Westpac: Early signs of recovery taking hold
Westpac NZ senior economist Satish Ranchhod, pictured, said the latest figures confirm a slow but steady turnaround.
“While it’s early days, signs of a recovery in residential building are starting to emerge. That recovery is still gradual for now. But consent issuance is starting to push higher,” Ranchhod said.
He noted consents rose 7% in September, the third consecutive monthly increase. Most growth came from multi-unit developments, particularly apartments and townhouses, though Ranchhod cautioned that large batches could cause short-term fluctuations.
“The underlying trend is looking more positive than it has for a long time,” he said. “After falling sharply through 2023 and 2024, homebuilding activity has been tracking sideways since the start of the year, and we don’t expect a significant turn-around through the final months of 2025. Nevertheless, the stabilisation in consent numbers indicates that we’re unlikely to see further significant declines over the remainder of this year.”
Gradual lift expected through 2026
Westpac expects residential construction to pick up through 2026 as lower interest rates filter through the economy. However, slow population growth and a large existing housing stock may limit the pace.
“Low interest rates are supporting new development, but population growth remains low and there have been sizeable increases in the housing stock over the past few years,” Ranchhod said. “Those factors are still weighing on house price growth and will also be a dampener on the pace of home building.”
Commercial consents still subdued
In non-residential construction, Ranchhod highlighted a rise in Auckland office space consents but said overall commercial activity is flat.
“Weakness in economic conditions has been weighing on occupier demand, with a lift in vacancy rates across all sectors and related downward pressure on rents,” he said, noting softness in retail but more resilience in office and industrial spaces.
While lower borrowing costs will eventually support development, Ranchhod said developers remain cautious. “Gains are likely to be gradual, with developers cautious about bringing larger projects to market until the recovery is entrenched.”
For more details and insights, read the Stats NZ media release and Westpac report.Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
