Our take on the latest Non-residential building consents (Wed 31 Jul 2024)
Value of non-res consents
$605m
In June 2024
Cost-adjusted consents total the lowest since 2016
Another large SCR consent for Christchurch
The key numbers...
- Total non-residential consents fell 21%pa in June 2024, to $605m. This monthly non-residential consent value was the lowest monthly total in a year-and-a-half (both actual and accounting for seasonality).
- Annual consent values are now down 9.6%pa, the worst fall (excluding the initial COVID-19 lockdown) since April 2011. Adjusted for building cost inflation, the decline in consented work is 14%pa, with annual cost-adjusted consent volumes now at their lowest since the end of 2016 (excluding lockdown).
- The largest falls by type were for factories (down $94m), retail (down $81m) and warehouses (down $55m) compared to June last year. Education and hotels consents were also lower, by around $35m each.
- There was a sizable increase in social, cultural, and religious (SCR) building consent values in June, with $139m consented, up $93m from last June, and the best month for SCR consents in half a year. This result stems from a single $100m SCR consent in Christchurch in June, expected to be related to the Te Kaha stadium.
- On a building cost inflation-adjusted basis, some types now have the lowest value of annual consents in years – annual education consent volumes are at their lowest since August 2014, retail consent volumes are back down to May 2010 levels, and farm consents are at their lowest since December 2000!
Non-residential consents continue to fall considerably
Annual running total ($b), adjusted for building-cost inflation
...and our reaction
- Non-residential consents continue to fall considerably, with the future pipeline of non-residential building work reducing further.
- The fact that the June 2024 monthly result was the weakest in 18 months, despite a $100m SCR consent, underscores the general pull back on non-residential building intentions that is ongoing.
- The falls in factory, retail, and warehousing consents are all interrelated, with less spending in the economy hitting sales and limiting retail expansion, and also hitting future production orders, limiting the need for additional factories and warehouses to store orders.
- The continued fall in education consent values, and the fact that annual education consent values (cost-adjusted) are so low, underscores too the government’s work to reprioritise education investment, which is leaving a considerable hole in future work in this build type.
Latest updates
Premium
Non-residential building consents
Warehouses prevent further non-res falls in June
Mon 3 Aug 2026
Monthly
$701m Value of non-res consents in June 2026
7.4% Total non-res consents from May 2026 (seas adj)
37%pa Warehouse consents from June 2025Premium
Non-residential building consents
Non-res consents weaker still in May
Thu 2 Jul 2026
Monthly
$789m Value of non-res consents in May 2026
19% Monthly consents from May 202549% Public sector consents from May 2025Non-residential building consents
Non-res consents mostly softer in April
Wed 3 Jun 2026
Monthly
$655m Value of non-res consents in April 2026
15% Monthly consents from April 2025Office and education consents at lowest monthly levels in 5-6 yearsNon-residential building consents
Consents strong in March, but shadow of conflict looms
Fri 1 May 2026
Monthly
$862m Value of non-res consents in March 2026
15% Monthly consents from Mar 2025$119m Hostel consents from Mar 2025