Annual approvals top 41,000 as Westpac warns momentum is fading
New Zealand approved more stand-alone houses in the year to September than at any time since 2022, but the monthly figures suggest the residential building boom is losing pace.
There were 41,091 new homes consented in the year ended September 2026, up 18% on the year before, according to fresh Stats NZ figures. Seasonally adjusted approvals, however, fell 7.9% in September compared with August, the fourth monthly fall in five months, according to Westpac’s analysis of the September consents data.
“The number of residential building consents remains elevated, but it looks like the peak may have been reached,” said Satish Ranchhod, senior economist at Westpac NZ.
Medium density cools as stand-alone homes hold up
Westpac said the monthly decline was centred on medium-density projects. Stats NZ’s comparison with September 2025 shows a similar split: townhouse, flat, and unit consents fell 20%, while stand-alone houses rose 8.2%.
Over the full year, stand-alone houses drove the growth. Approvals rose 20% to 19,228, an increase of more than 3,200.
“Stand-alone houses were the biggest contributor to this increase, reaching their highest annual number since 2022,” said Michelle Feyen, Stats NZ economic indicators spokesperson.
Multi-unit consents climbed 16% to 21,863. Within that, townhouses, flats, and units rose 18% and retirement village units jumped 44%, while apartments fell 11%.
Auckland and Canterbury lead
Auckland supplied more than half of the extra stand-alone homes nationwide. Approvals there rose 36% to 6,426, the region’s strongest September-year percentage gain since 2010. Across all dwelling types, Auckland’s consents are up 16% over the year, Westpac said.
In Canterbury, stand-alone approvals rose 27% to 4,831. Total new home consents in the region rose 31% to 8,906, beating its previous September-year high of 8,718 set in 2022.
Outlook for 2027
Westpac expects the projects already approved to lift building activity through 2027, led by Auckland and Canterbury. It cautioned, though, that “the rise in interest rates, the related softness in the housing market, and a pickup in building costs” were likely to limit new projects.
That softness is already showing in prices: national property values fell 1.3% in the year to September and sit more than 18% below their peak.
Rates are likely to keep that pressure on. The Reserve Bank of New Zealand (RBNZ) held the OCR at 2.75% on 28 October in a 4–3 vote, with all members agreeing tighter policy is likely, subject to the outlook.
For mortgage advisers, the strong pipeline still points to demand for construction lending and new-build purchases, particularly in Auckland and Canterbury. A slowdown in new medium-density projects could, however, narrow the choice of new-build stock for first-home buyers and property investors once current projects are completed.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
