Ren茅 Muschter
Research Expert covering Industry & Mobility
Construction industry in New Zealand - statistics & facts
Rising project and material costs, subdued building consent activity, ongoing labor supply issues, and weather-related incidents have challenged New Zealand鈥檚 construction sector recently. Even so, exceeded 17 billion New Zealand dollars for the past five years. As of 2024, the industry supported over 200,000 , a significant rise from just a decade prior. Moreover, with setbacks comes the opportunity to re-evaluate industry priorities. Some include the development of a clearer pipeline of central and local government work, project fast-tracking under the Resource Management Act (RMA), and immigration changes creating pathways for construction workers.
Non-residential building activities remained comparatively robust. in 2024, including several high-value projects to construct railway stations alongside retail spaces, courthouses, museums, and galleries. Furthermore, a high number of education facilities were in the pipeline that year. Auckland, New Zealand鈥檚 largest metropolitan area, continued to lead the country regarding residential, non-residential, and infrastructure construction.
While New Zealand鈥檚 construction industry has contended with its fair share of issues impacting project timelines, a stronger pipeline of residential building development is expected between late 2025 and 2029. Conversely, infrastructure and non-residential building activities are forecast to remain robust throughout 2025 and 2026 but trend downward from 2027. Nevertheless, the nation鈥檚 prevailing need for existing building and infrastructure renewals and investment in new developments in conjunction with population growth and demographic shifts presents a more optimistic long-term outlook.
Building construction activities
Construction activities varied across New Zealand鈥檚 residential and non-residential sectors. In February 2024, the CEO of Fletcher Building, one of the country鈥檚 largest construction companies, announced his intention to step down amid of 120 million New Zealand dollars. The company鈥檚 losses came at a challenging time for New Zealand鈥檚 residential construction sector, with reaching a five-year low.Non-residential building activities remained comparatively robust. in 2024, including several high-value projects to construct railway stations alongside retail spaces, courthouses, museums, and galleries. Furthermore, a high number of education facilities were in the pipeline that year. Auckland, New Zealand鈥檚 largest metropolitan area, continued to lead the country regarding residential, non-residential, and infrastructure construction.
The path to climate-resilient infrastructure
Following Cyclone Gabrielle in 2023, the 2024 East Coast floods, and several wildfires, the climate resilience of New Zealand鈥檚 infrastructure has moved into focus, with construction workers reporting . Due to its geographic location, the country faces a relatively high natural disaster risk, including flooding, earthquakes, and tornadoes, causing damage to properties, roads, bridges, and other infrastructure. These weather and seismic events often lead to the reprioritization, cancellation, delay, and re-costing of projects, incur high rebuild costs, disrupt the long-term pipeline, and inflate construction material prices. Therefore, creating new and adapting existing infrastructure to withstand and lowering carbon emissions generated by projects is becoming vital.Infrastructure development outlook
in New Zealand in 2024, with many high-value transport projects focusing on road construction and maintenance. That year, the expansion of water-related infrastructure networks was another key focus. In comparison, accounted for less than one percent of all projects that year.While New Zealand鈥檚 construction industry has contended with its fair share of issues impacting project timelines, a stronger pipeline of residential building development is expected between late 2025 and 2029. Conversely, infrastructure and non-residential building activities are forecast to remain robust throughout 2025 and 2026 but trend downward from 2027. Nevertheless, the nation鈥檚 prevailing need for existing building and infrastructure renewals and investment in new developments in conjunction with population growth and demographic shifts presents a more optimistic long-term outlook.
