The latest building consent stats confirm what many in the building industry have been sensing for a while:
After a long flat period, a significant uptick in residential building activity is well underway.
According to Stats NZ, 36,944 new homes were consented in the year to January 2026, up a healthy 9.3% compared with the previous year. That’s an average figure for all ‘homes’.
When looking at the different categories, standalone homes had a strong gain with 16,748 consented, up 5% compared with the previous year, whereas townhouses, flats and units were up a massive 14% with 16,175 consents.
Growth in most regions
Auckland had the most consents (up 13%) and accounted for nearly 60% of the national increase, largely driven by medium-density townhouse projects
Other regions recording solid growth include Canterbury (up 12%), Wellington (up 16%), Waikato (up 9 %) and Otago (up 11%).
Several smaller regions also posted strong gains, with Nelson and Southland recording annual increases of more than 30%.
After several challenging years for the construction sector, the latest figures suggest residential building activity is in a growth phase, with a building pipeline of projects expected to support work through 2026.
While all the signs are positive, international events may moderate growth, with the war in the Middle East and rising oil prices leading to greater economic uncertainty.
The four regions with the most consents issued were:
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15,617 in Auckland (+9.7%)
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7,316 in Canterbury (+11.8%)
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3,044 in Waikato (+10.5%)
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2,171 in Wellington (+18.4%)
Townhouse oversupply tough on developers
The huge rise in consents for townhouses in recent years may moderate this year as developers struggle with a glut of unsold stock due to a mismatch in the supply/demand cycle.
With a difficult economy and a slump in net migration, a growing number of newly built townhouses are sitting on the market so long that they are losing their ‘new build’ status, highlighting the extent of oversupply in parts of the housing market.
To qualify as a new build, a property must have received a code compliance certificate within the past six months, never been lived in, and be purchased directly from the developer. That status allows buyers – particularly first – home buyers – to access lower deposit lending options.
However, strong development activity in recent years has left some markets saturated, particularly in Auckland and Christchurch, with many listings lingering beyond the six-month window.
Some developers are now placing unsold properties into rental pools or short-term accommodation, which also removes their new-build eligibility. The situation is also evident in the apartment market, although the numbers are smaller.