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What Is Pushing Up House Construction Costs?

Friday, 21 May 2021, 3:45 pm The March quarterly growth is the highest rate of construction cost inflation since Q1 2019, and far above the 0.6% and 0.4% increases throughout Q3 and Q4 2020 respectively, according to CoreLogic’s Cordell Housing Index Price. The Arcadis 2021 International Construction Costs report also found Auckland and Christchurch to be in the top 20 most expensive cities to build. We may now be seeing the clear impact of a busy construction sector flowing through to faster cost rises. Q1 bounced up to 1.3% growth and early indicators are that we will see a continuation of this growth in our Q2 report. Annual residential construction cost inflation is also back on the

House building costs have spiked as capacity constraints and supply shortages start to bite

RNZ Judith Collins says more tradespeople should be let into New Zealand to help build more houses and ease supply and demand troubles. The cost of building a house increased by the highest rate in two years in the March quarter and it is likely to get more expensive as industry pressures bite, an economist says. CoreLogic’s Cordell Housing Index showed that residential construction costs went up by 1.3 per cent over the March quarter. That was the highest rate of construction cost inflation since the first quarter of 2019 and well above the 0.6 per cent and 0.4 per cent increases recorded over the third and fourth quarters of last year.

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