Residential building consents

House consents rise, townhouses continue descent

1 Oct 2024
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Matthew Allman

Our take on the latest Residential building consents (Tue 1 Oct 2024)

Dwelling consents
33,632
As of August 2024
House consents up 14% from August 2023
Apartment consents lowest since early 2016

The key numbers...

  • Dwelling consent numbers in August totalled 2,881, down 9.1% from August last year. 
  • Standalone house consents rose 14% from August last year. The biggest contributors to the rise were Auckland (up by 81 houses from August 2023), Canterbury (up 53), and Manawatū (up 30).
  • Retirement units had another strong month, recording 275 consents, the biggest month in a year. There were projects across several regions, including Canterbury and Nelson with 25 and 15 respectively. However, the main driver of the strong result was 211 units in Auckland, its strongest result on record (data from April 1990).
  • Townhouse consent numbers continue to be pulled down by weakness in Auckland, with around half of the 23%pa decline coming from the fall in Auckland. The nationwide annual townhouse consent total of 14,608 is the lowest since August 2021.
  • Apartment consent numbers fell below 50 for the first time since April 2016, with no consents coming outside Auckland and Wellington. The annual apartment total of 1,704 is it’s the lowest since early 2014.

Townhouses' delayed downturn weighs on total consent numbers

Annual running total
5049

...and our reaction

  • Last month we were cautious about the apparent strength in the data due to an anomaly in consents in Queenstown-Lakes boosting the result. This month’s result was stronger than June’s particularly weak result, but in line with April and May. Although we have been forecasting a stabilisation in consent numbers over the second half of 2024, it remains too early to call the trough in consents.
  • Weakness in townhouse consent numbers reflects the longer lead times associated with multi-unit developments, reduced investor demand for new builds, high construction costs, and low yields in the real estate market.
  • We continue to predict 25-point cuts at the remaining two official cash rate reviews of 2024, given data releases continue to broadly align with the Reserve Bank’s forecasts. Although a 50-point cut before the end of the year is not out of the question, it is more likely at the Monetary Policy Statement in late November, given it would then be almost three months before the committee meets again. 
  • Despite the coming flurry of interest rate cuts, we do not believe this will ignite a rush of residential consents as construction costs are high, but existing house prices are already overinflated compared to both personal incomes (for owner-occupiers) and rental incomes (for investors). We will publish updated building forecasts on 18 October.

Latest updates

Premium
Residential building consents

Residential consents fall 3.6% in June

Mon 3 Aug 2026
Monthly
40,581 Annual consents over the June 2026 year
19% June 2026 consents over the June 2026 year
3.6% June 2026 consents from May on a seas. adj. basis
Premium
Residential building consents

Residential consents fall 4.0% in May

Thu 2 Jul 2026
Monthly
39,737 Annual consents over May 2026 year
4.0% May 2026 consents from April on a seas. adj. basis
22%pa Townhouse consents over May 2026 year
Residential building consents

Residential consents jump up 11% in April

Wed 3 Jun 2026
Monthly
39,087 Annual consents over April 2026 year
11% April 2026 consents from March on a seas. adj. basis
19%pa Multi-unit consents over April 2026 year
Residential building consents

Residential consent momentum trends sideways

Fri 1 May 2026
Monthly
37,813 Annual consents over March 2026 year
3,300pm Consents trend sideways on a seas. adj. basis
14%pa Townhouse consents over March 2026 year