Record-Breaking Construction Costs Impact New Zealand Home Buyers: How Qualified Cost Estimator Can Help

The New Zealand housing market has experienced a record-breaking increase in construction costs for new homes over the last 12 months, with the cost of building a standard 200 sqm three-bedroom, two-bathroom single-story brick and tile house rising by 10.4%, soundly trouncing Q3’s record of 9.6%.

This unprecedented surge in costs is attributed to a combination of factors, including increased demand for new builds, materials supply issues, labour shortages, and project completion delays.

CoreLogic’s Cordell Construction Cost Index (CCCI) report highlights that while there are early signs of the market starting to slow down, construction costs are expected to remain elevated in the short term. This situation puts significant pressure on construction firms’ profit margins and creates challenges for New Zealand home buyers. (Source)

Despite eases in supply chain issues, annual inflation of 10.4% for the cost of materials is expected to continue to put pressure on building prices.

As well, the pressure on overall capacity is still heightened by the construction demand necessary for meeting New Zealand’s population growth. However, as stock levels grow, new dwelling consents are expected to drop from 50,000 units to around 30-35,000 units. This figure is still much higher than in previous years, but it should start to ease some of the market pressure.

The rising costs are discouraging, as it becomes increasingly difficult to find affordable housing options. However, one solution to help control and manage these costs is to engage the services of a professional cost estimation service.

How a qualified construction cost estimation service in New Zealand can help?

Newin Building Estimating Services offers expert cost estimation and control services for both residential and commercial construction projects. Their team of experienced professionals can provide accurate and comprehensive estimates, enabling clients to make informed decisions and avoid potential cost overruns.

By working with Newin Building Estimating Services, home buyers and property investors can gain valuable insights into the true costs of construction and ensure that their project remains within budget. This expertise allows clients to navigate the complex and rapidly changing construction market, making the dream of homeownership more attainable.

As the New Zealand housing market continues to face challenges from rising construction costs, it becomes increasingly important for home buyers and property investors to take a proactive approach to manage their projects.

How to get the most value out of a new home build in New Zealand

With so much uncertainty in the building industry and no sign of it improving any time soon, getting the most value out of a new home build will continue to be a challenge for homeowners.

Construction cost estimators like Newin Building Estimating Services are a professional service provider with extensive experience in the building industry and associated trades. If you are looking to understand the latest building costs in Auckland, reduce your building construction costs and streamline your building project, a building cost estimator can help.

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