Dwelling consents largely stable

There were 2,578 new dwelling consents issued in February, down 7.8% from February 2024. Consents were higher than January 2025, up 0.8% marking the second consecutive monthly rise for the first time since March 2024 (seasonally adjusted). 

There were 1,191 standalone house consents in February, down 8.2%pa from a year ago, driving the annual decline. The trend across the second largest dwelling type, townhouses, has been hard to read in recent months but February with 1,117 consents was 1.6% higher than a year ago, marking two consecutive rises in townhouse consents for the first time since November 2022.

The annual total of apartment consents returned to declines last month following a jump boosted by 360 consents in December 2024. There were 110 apartment consents in February, bringing the annual total to 1,837, down 20%pa from a year earlier.

There were brief signs that retirement village consents may be improving in mid-2024, but with just 100 consents in February, and under 100 consents in each of the previous three months, the annual total of 1,678 is now the second lowest since July 2017.

The South Island continues to out-perform the North Island. Consents across the South Island were up 9.9%pa from February 2024, compared with a 13%pa decline in the North Island. This may be a reflection of stronger economic performance across the South Island as better commodity prices is supporting the Southern regions.

The annual total has remained steady between 33,000 and 34,000pa for the past nine months. Despite lower interest rates, slower than previous expected population growth might prevent a sustained recovery in residential consents over the next year.