Consents Figures Down Again in October 2024

Stats NZ data says that 2,850 new homes were consented to in New Zealand in October 2024, down 6.9% compared with October 2023. The annual number of homes consented is down 16%.

The most notable statistics from this batch of consents data are on the shrinking gap between multi-unit and stand-alone houses.

“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 economic indicators spokesperson Michael Heslop said.

“On an annual basis, multi-unit homes have been consented in higher numbers than stand-alone houses since early 2022, but the gap between the two is narrowing. This reflects the balancing act between affordability, market demand, and supply-side constraints as post-pandemic needs shift.

Multi-unit homes are often a more cost-effective option for buyers, also mitigating urban sprawl as land costs rise. Yet these builds often involve higher costs per square meter due to their design, height, and stricter compliance requirements so might not be as cost-effective as expected.

Issues with construction materials impact multi-unit projects more than stand-alone builds, and tighter margins might discourage developers from pursuing multi-unit projects at the same pace as in previous years.

Housing Market Flatlines

Turning attention to the housing market, and the average home in New Zealand is now worth about the same as at the start of 2024. Per the latest QV House Index, the average home is worth $902,231, which is just 0.3% ($2,839) less than at the start of this year.

“New Zealand’s housing market remains largely flat overall, with essentially no growth to speak of during the month of October itself – neither up nor down – and only a slight decline nationally this quarter of less than 1% on average,” said QV operations manager James Wilson.

“Home values have flattened out again after some more sizeable yet still relatively modest reductions throughout the winter months, but they are still showing no signs of taking off anytime soon. This is reflective of a housing market that is still severely constricted by strong economic headwinds – despite recent interest rate reductions, which will still take some time to phase through.

“Housing affordability remains a challenge for everyone, even as economic conditions slowly improve. Prospective buyers have to weigh up the benefits of falling interest rates and having a smorgasbord of properties to choose from, versus rising unemployment and increased job insecurity. With that in mind, it’s little wonder why it’s still relatively quiet for this time of year and property values remain so weak.”