New Zealand: Annual Home Consents Drop by 17%

In the year ending August 2023, New Zealand witnessed a 17% decline in newly consented homes compared to the previous year, according to data released by Stats NZ. The total number of new homes consented during this period was 42,110, continuing the downward trajectory from the peak of 51,015 in May 2022.

Key Points:

  1. Overall Decline: The annual decline in home consents is part of a continued trend from the peak observed in May 2022. Despite the decrease, the number of consents in the year ending August 2023 is still higher than any 12-month period before 2021.
  2. Housing Types: Stand-alone houses experienced a 25% decrease with 17,267 consents, while multi-unit homes, including townhouses, apartments, retirement village units, and flats, saw a 10% drop with 24,843 consents.
  3. Regional Variances: Except for Marlborough, all regions reported fewer new home consents in the year ending August 2023. Auckland led with 18,003 consents, down 16%, followed by Canterbury with 7,406 (down 15%), Waikato with 3,981 (down 22%), and Wellington with 3,267 (down 16%).
  4. Monthly Data: In August 2023, 3,170 new homes were consented, marking a 30% decline from August 2022. The decline has been consistent throughout 2023 compared to the same months in 2022 and 2021.
  5. Seasonal Adjustments: In seasonally adjusted terms, the number of new homes consented in August 2023 fell by 6.7% compared with July 2023, continuing a decreasing trend since early 2022.

While the decline in home consents may be influenced by various factors, ongoing monitoring of the housing market will be crucial for understanding the dynamics of New Zealand’s property landscape.