Building activity bounces back in December 2021

The volume of building activity in New Zealand rose 8.9 percent in the December 2021 quarter, compared with the September 2021 quarter, Stats NZ said today.

Residential building activity rose 5.2 percent in the December 2021 quarter, while non-residential building activity rose 16 percent.

"Building activity picked up in the December quarter following the COVID-19-induced dip of 8.4 percent in the September quarter," construction statistics manager Michael Heslop said.

"Auckland spent several weeks in a COVID-19 alert level 4 lockdown, which paused most building activity in the region over that period."

These volume estimates remove the effects of price changes and typical seasonal patterns. Between the September 2021 and December 2021 quarters, residential building costs rose by 4.0 percent, and non-residential building costs by 2.2 percent .

Building activity lifts 10 percent in 2021

The volume of building work put in place for the 2021 year is up 10 percent, compared with 2020. The COVID-19 alert level 4 lockdown in 2020 reduced building activity in the March and June 2020 quarters. Since then, building activity levels have increased, with residential building activity lifting to historically high levels.

"The rise in building activity levels follow strong increases in building consent issuance, particularly for new homes," Mr Heslop said.

See Record number of new homes consented in 2021 for more information.

Value of building work in Auckland tops $11 billion in 2021

The value of building work put in place in Auckland was just over $11 billion in 2021. Building activity has grown significantly in the region over the last decade.

Value estimates of building work put in place (in contrast to volume estimates) include changes to building costs over time (such as material and labour costs).

"The rise in building activity in Auckland has mostly been driven by a rise in consents for new homes," Mr Heslop said.

"Auckland consented over 20,000 new homes in 2021, rising 23 percent compared with 2020."

The total value of building work put in place in Auckland accounted for less than a third of the national total during a low point in 2009, and now accounts for around 38 percent in 2021. This is slightly down from the peak of 42 percent in 2019, reflecting strong growth in other regions.

Auckland experienced a bigger impact from the COVID-19 alert level 4 lockdown in the September 2021 quarter. The region also spent more time in alert level 3 than other regions in the September and December 2021 quarters. At alert level 3 building activity was able to continue, but some restrictions were still in place.

Methodology

Statistics for the September 2021 quarter onwards remain provisional and may be revised later this year.

See the Methodology for Value of building work put in place: December 2021 quarter onwards for more information.