New homes consented down 7.2% annually, despite many Government moves

The coalition Government wants more homes to be built cheaper and faster, yet official data shows an annual 7.2% drop in the sector.

“In the year ended January 2025, there were 33,812 new homes consented, down 7.2% compared with the year ended January 2024,” Stats NZ announced today.

Even though January new-house building consents were 11% up on last January, they were still below the January 2022 and 2023 figures.

Also, the total floor area of new homes consented in the year to January 2025 was the lowest for a January year since 2015. The average floor area for standalone houses was 176sq m, down from 183sq m in the year ended January 2024 and the lowest for a year ended January since 1994.

In the year ended January 2025, there were 17,854 multi-unit homes consented, down 15% annually. There were 15,958 standalone houses consented, up 2.9% over the same period.

Of the 2203 new homes consented in the single month of January this year, 1077 were for standalone houses, up 20% on last January, while 1126 were multi-unit homes consented, up 3.1%.

Of the multi-unit homes consented in January, there were:

• 968 townhouses, flats and units, up from 899 last January;
• 68 apartments, down from 123 apartments;
• 90 retirement village units, up from 70 retirement village units.

The seasonally adjusted number of new homes consented in January 2025 rose 2.6% compared with December 2024.

Building and Construction Minister Chris Penk last year announced changes to get more homes built.

“The coalition Government is focused on making it easier and cheaper to build homes so we can rebuild the economy and get Kiwis into homes faster,” Penk said then.

Since then, the new fast-track law has been passed, approving nearly 150 projects out of 384. Many of those are for housing, including Winton Land’s Sunfields scheme for around 5000 South Auckland homes.

Building and Construction Minister Chris Penk. Photo / Mark Mitchell

Changes to the building consent system included streamlining it to cut building consent authority inefficiencies, increasing remote inspections and allowing minor variations to building plans. Granny flats are to be allowed to be up to 60sq m without a resource or building consent.

Penk said the Government would clarify the definition of a “minor variation” and introduce “minor customisations” to the Building Act. This would mean Kiwis won’t need to submit a new consent for minor product or design changes.

Unclear and inflexible regulations added unnecessary time and delays to the build process, Penk said.

“This will provide more flexibility, which will help reduce delays and lower the cost of building and renovating,” he said.

In January, Penk said the time it takes to process building determinations has improved significantly over the last year, which means fewer delays in homes being built.

“New Zealand has a persistent shortage of houses. Making it easier and quicker for new homes to be built will not only mean more Kiwis can enjoy the benefits of a warm, dry home, but it will also grow the economy and create well-paying jobs.

“If a builder disagrees with a council decision, they can apply for a determination from the Ministry of Building, Innovation and Employment [MBIE] to resolve the issue and make a legally binding decision on whether the building work complies,” Penk said on January 8.

“These decisions are critical to support innovation in construction practices like the use of new building products, along with providing guidance for builders, designers and councils in cases that are more complex.”

In December, he announced improvements in the average time it takes to process survey and title applications, which he said means housing developments can progress more quickly.

Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.