Boom in construction to fade over next few years

The $9.2 billion drop in construction will be driven by the reduced strength of the residential market, says the  national construction pipeline for 2022 prepared by the Building Research Association (Branz) and construction research firm Pacifecon.

About 223,000 new dwellings are expected to be consented over the five years to 2027 at an average of just over 37,000 dwellings a year.

Despite the fall from the elevated levels of the past couple of years, an average of 37,000 dwelling consents per year takes residential construction back to 2019 levels.

Multi-unit dwellings accounted for 48% of all dwellings consented last year and the report is forecasting 22,680 multi-unit consents this year, falling to 14,380 by 2027.