Our take on the latest Residential building consents (Fri 1 Jul 2022)
Annual dwelling consents
51,015
As of May 2022
Townhouse consents up 54% from May 2021
House consents down 16% from May 2021
The key numbers...
- The annual consent total pushed above 51,000 for the first time in May, with 4,528 new dwelling consents issued in the month, up 7.8% from May 2021.
- Townhouses continued their rampant growth, with the monthly total of 2,135 consents meaning growth has stayed above 50%pa for the last four months.
- Auckland’s monthly townhouse consent total surpassed last August’s record, reaching 1,329, more than 500 units higher than a year ago. Wellington also managed a record monthly total of 239 townhouse consents.
- In contrast, most regions recorded a decline in house consent numbers from a year ago. The most significant regional drops were in Auckland (down 249 consents, or 35%) and Waikato (down 73 consents, or 20%).
- The value of residential alterations and additions consents was down 4.0% from a year ago, the first annual decline since January 2021. Given residential building cost inflation of 18%pa, this drop implies that demand for alterations and additions work is flagging in the face of rising interest rates, the slowing housing market, and significant cost pressures.
Townhouses continue to close the gap
New dwelling consents, annual running totals
...and our reaction
- High townhouse consent numbers reflect the highly unaffordable nature of housing, with potential purchasers downsizing their purchasing aspirations and accepting smaller homes on smaller sections.
- Tax advantages for investors and lower LVR requirements for all purchasers are helping maintain upward momentum in consent numbers, despite the sharp downturn in house sales and prices since late 2021.
- Nevertheless, rising interest rates, construction delays, and residential building cost inflation of 18%pa all point towards an impending slowdown in consenting activity.
- Total consent numbers across all North Island regions except Auckland and Wellington were lower in the last three months than the same period in 2021. We expect this weakness to spread as the construction industry continues to work through the backlog of new homes awaiting completion.
Latest updates
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Wed 3 Jun 2026
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Fri 1 May 2026
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37,813 Annual consents over March 2026 year
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