Hon Minister Chris Penk
Minister for Building and Construction

A new report highlights major and widespread productivity challenges facing the construction sector, underlining the importance of the government’s plan to make it easier and more affordable to build, Building and Construction Minister Chris Penk says.

“The New Zealand Chinese Building Industry Association has today released a report investigating the building and construction sector and outlining the opportunities and challenges of one of New Zealand’s most important sectors.

“The construction sector is a crucial part of the economy, contributing $99 billion in sales in 2023 and indirectly supporting 20 per cent of all jobs in New Zealand.

“However, the report paints a grim picture of the sector, finding that productivity levels have remained the same since 1985 – an extraordinary statistic considering how much technology has advanced since that time.

“Another key challenge is the increasingly slow build process, with the time taken to build a home increasing by 50 per cent since 2013, from 13 months to 19 months.

“These factors combine to create an unaffordable housing market which forces Kiwi families to spend more and more of their income on housing. It is particularly confronting that renters now spend nearly 40 per cent of their income on housing.

“This is reflected in the report, which asked New Zealanders to describe the construction sector with one word, with the most common response being ‘expensive’.

“The findings of the report are exactly why the Government is focused on streamlining the building consent system and removing unjustifiable red tape that is slowing down the build process.

“Lifting productivity in the sector will not happen overnight but it is vital to build more homes so more Kiwi families can benefit from living in a stable home and gain all the associated social and health benefits.

“As part of our ambitious agenda to reform the building and construction sector, this year the government has already progressed a raft of changes to make it easier to build, including:

• Removing barriers for overseas building products to be used in New Zealand.
• Progressing work to make remote inspections the default approach which offers significant productivity gains over traditional methods of inspections.  
• Making it easier for minor changes to be made to a building consent to remove the need for an additional application to be lodged for small changes.
• Putting the spotlight on building consent delays by requiring councils to publish processing times every quarter.
• Reviewing the earthquake-prone building system to better balance safety with cost and risk.

“I thank the New Zealand Chinese Building Industry Association for this insightful report into the building and construction sector that underlines the importance of making it easier and more affordable to build so Kiwis can live in the quality affordable homes they deserve.”

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