A recent report by the New Zealand Chinese Building Industry Association, highlighted by Building and Construction Minister Chris Penk, reveals significant productivity challenges in New Zealand’s construction sector. Despite technological advancements since 1985, productivity levels have not improved. The report underscores the sector’s importance, contributing $99 billion in sales in 2023 and indirectly supporting 20% of all jobs in New Zealand.
Escalating Build Times and Costs
The time to build a home has increased by 50% since 2013, now taking 19 months on average. This slowdown, coupled with stagnant productivity, has led to an unaffordable housing market, with renters spending nearly 40% of their income on housing. The term ‘expensive’ was the most common descriptor for the construction sector among New Zealanders.
Government’s Response to the Housing Crisis
In response to these challenges, the government is streamlining the building consent system and cutting red tape to expedite the build process. These reforms aim to boost productivity and make housing more affordable, ensuring that Kiwi families can enjoy the social and health benefits of stable, quality homes. The government’s commitment to reform is evident in the changes already made this year to simplify building processes.
Conclusion
The insights from the report are a call to action for making construction easier and more affordable. Minister Penk’s acknowledgment of the issues and the government’s proactive measures offer hope for a more efficient and accessible housing market in New Zealand.
