The pipeline of new Auckland housing will underpin a longer construction boom for the country, making up for an overestimation in the amount of commercial work in the pipeline, says the 2016 National Construction Pipeline Report.
Prepared by the Building Research Association of New Zealand and Pacifecon, a construction industry consultancy, the report shows building work is now expected to peak in 2017 at $37 billion, a year later than previously thought.
That's because Auckland's need for new residential property more than makes up for less commercial work than anticipated. Auckland is expected to dominate construction work over the six years to 2021, peaking in 2018 at $17 billion and hovering above $16 billion through to the end of the period.
"The growth in residential activity in Auckland is particularly encouraging as it forecasts that next year more homes will be built in Auckland than ever before," Building and Housing Minister Nick Smith said in a statement.
"The scale of this growth is unprecedented and equates to Auckland growing by the equivalent of Whangarei every three years."