Master Builders: Industry Insights

Ankit Sharma, CEO

If there’s one phrase that captures the mood across the construction sector in 2025, it’s cautious optimism. After several challenging years marked by economic uncertainty and shifting demand, the industry is beginning to find its footing again.

Master Builders’ 2025 State of the Sector survey tells a clear story. Nearly two-thirds of respondents (63 per cent) expect the economy to improve within the next year, and 62 per cent anticipate their own business will be stronger by the end of 2026. Order books are starting to fill once more, with 64 per cent reporting strong or steady workloads. The tide is slowly turning.

Cautious optimism returns to the building sector

The recovery, however, is uneven. Southern regions are bouncing back faster, while Auckland and Wellington still face headwinds. Yet the direction of travel is clear, confidence is returning, and builders are beginning to look ahead rather than just hold the line.

Encouragingly, government policy is playing a constructive role. Reforms to building consents, a more predictable Building Code update cycle, and improvements to product access all point toward a system that is becoming more workable and less reactive. If these initiatives are embedded well, they will help unlock delivery and provide greater certainty for both builders and homeowners.

Challenges remain. Rising costs, inconsistent consenting practices, and constrained access to finance continue to hold back productivity. But 2025 feels like a turning point, a year when resilience met opportunity and the sector’s narrative began shifting from survival to delivery.

If we can maintain policy stability, invest in capability, and continue to back quality builders to succeed, then 2026 could mark the beginning of a confident and enduring recovery for New Zealand’s building and construction sector.