Building consents for new homes have risen 19% annually, the first increase after three years of consecutive annual declines, according to Statistics NZ.
The 12 months ending in May recorded 39,737 consents for new homes, up from the previous 12-month period. However, activity levels remain substantially lower than the 51,015 consents recorded in the year ending May 2022, which represented the sector's high point.
Dwelling types show broad gains
Growth occurred across dwelling categories. Stand-alone houses accounted for 18,271 consents, up 17%, while townhouses and home units recorded 17,230 consents, a 22.3% increase.
Apartments saw 2,554 consents issued, up 20%, while retirement village units reached 1,682 consents, a 3% gain.
In May alone, 3,801 new dwelling consents were issued, 21% higher than the same month a year earlier.
Residential work value climbs
Construction work for the 39,737 new dwellings consented in the May year carried a total value of $17.872 billion, an 18% annual increase. Structural alterations to existing homes represented $2.219 billion in consented work, up 2% and marking the first annual increase in alteration work value since the May year 2023.
Combined, residential consent values totalled $20.092 billion for the 12 months to May, a 16% rise on the prior 12 months.
Non-residential sector continues slide
While residential construction rebounded, the non-residential sector showed an ongoing decline. Consents for non-residential building work totalled $8.666 billion in the May year, down 4%.
This represented the third consecutive annual decline in non-residential work value measured in the May year, with the sector now at a five-year low. In May itself, non-residential consents worth $789 million were issued, 19% below May the previous year.
Farm buildings provided a partial offset, with consents worth $334 million in the May year, up 34% annually.