Building optimism in 2021
An award-winning Jennian Home in Masterton. PHOTO/FILE
Residential housing remains strong
Leaders of the Wairarapa construction industry disagree with forecasts of a nationwide decline in construction activity.
The National Construction Pipeline Report, commissioned by the Ministry of Business, Innovation and Employment [MBIE], projected that New Zealand would see a decrease in construction activity through to 2023 as a result of covid-19.
The report predicted that residential activity – the largest contributor of national construction – would be hit hardest.
According to the report, the value of residential construction would fall 43 per cent from $23.7 billion in 2019 to $13.4 billion in 2023, as banks tightened their lending requirements.
The cost of each power-saving tactic varies. First on EECA’s plan to cut energy waste to zero is low-energy LED lightbulbs, said strategy and engagement general manager Marcos Pelenur. If every home made the switch, we’d save 82,000 tonnes of greenhouse emissions annually. “We estimate that if you want to change your whole house over into LEDs, it’s probably going to cost you maybe between $200 and $400, but that would save you between $100 and $300 per year. There’s a quick payback,” Pelenur said. Next, we’d replace our traditional room and hot water heaters with heat-pump technology, Pelenur said.
Construction Industry Council chair Graham Burke told
Morning Report the forecast was counter-intuitive because people on the ground were saying they have never been this busy. Builders are saying they are booked up for all of next year and some into the following year.
He said for building to come to a halt would take something significant happening. There s plenty the government can do to make sure that consumer confidence remains. The government are building more houses themselves than we ve seen in decades; that s a small part of the industry, we do need private houses to continue.
Burke said there was a shortage of materials from overseas, which are expected to get tighter over the next quarter.