New Zealand's construction industry has seen relatively continuous growth over the past decade, contributing around **** billion New Zealand dollars in gross domestic product (GDP) in the year ended March 2024. Nonetheless, in 2025, the country's construction industry GDP fell to **** billion dollars. Key construction segments In New Zealand, the construction sector includes residential builds, commercial builds, and infrastructure such as roads and energy services. All segments have grown due to increasing demand for housing, offices, roads, energy, fiber installation, and water supply. New Zealand’s housing market has been an important topic over the years, with larger metropolitan regions such as Auckland facing large housing shortages. The value of residential building consents issued across the nation grew consistently between 2017 and 2022 before witnessing a decline in 2023 and 2024. In terms of infrastructure construction starting in 2024, transportation and water infrastructure projects led by volume. Climate resilience of infrastructure Owing to its geographical location, New Zealand has a relatively high natural disaster risk, including flooding and cyclones. Following damages caused to properties, roads, bridges, and other infrastructure in 2023 and 2024 due to Cyclone Gabrielle, the East Coast floods, and several wildfires, the ability of the country's housing and infrastructure to withstand climate change has shifted into focus. Building new and adapting existing buildings and infrastructure to be more climate resilient is becoming vital in terms of preparedness and the smooth functionality of the construction pipeline as a whole to reduce cancellations, delays, and high rebuild costs.

During the third quarter of 2024, the construction industry in New Zealand employed around ******* salary or wage earners. This value represented those directly employed in that industry, with the number of employees in construction-related occupations much higher.

Trends in New Zealand's population growth and residential settlement drive the industry's long-term performance. Institutional buildings like schools, hospitals, churches, law courts and community centres are crucial for offering public and social services. Some stimulus for industry expansion has come from growing private equity involvement in public building projects under public-private partnership (PPP) arrangements, which included CPB Contractors' delivery of three school projects in 2019 and the Waikeria Prison in mid-2025. Industry revenue is expected to swell by an annualised 4.5% through the end of 2025-26 to $5.3 billion, despite the anticipated fall in revenue by 2.1% during the current year in response to the completion of several healthcare and educational buildings. The industry's profit performance has strengthened on the back of surging investment in constructing these buildings, allowing builders to achieve wider profit margins without jeopardising cashflow. Still, builders have endured rising prices for building materials and skilled labour inputs resulting from supply chain blockages and general inflationary pressures. Wide annual fluctuations in the industry's performance stem from the start-up and completion of large-scale building projects, as well as shifts in budgetary spending by the Central Government (Te Kāwanatanga o Aotearoa). The COVID-19 outbreak redirected public healthcare spending towards testing and vaccinating people, but recent hospital redevelopment funding has lifted this segment to record levels in recent years. The incoming coalition government moved to trim the planned school building agenda to 252 projects, putting 100 projects on hold. Buoyant population growth will underpin the industry's expansion over the next five years, with revenue projected to climb at an annualised 1.9% to reach $5.8 billion by 2030-31. Much of this growth will be underpinned by the recent commencement of work on landmark healthcare developments, including the Nelson Hospital, the Wellington Regional Hospital and the Dunedin Hospital. Still, builders will continue to face fierce competition chasing work on smaller public educational and healthcare projects as the Central Government looks to rein in a budget deficit. Changes in the government's funding approach could open the way for PPP funding of healthcare projects, which may cushion subdued public sector funding for institutional buildings.

Graph and download economic data for Orders: Construction: Permits Issued: Dwellings and Residential Buildings for New Zealand (NZLODCNPI03IXOBM) from Feb 1973 to Oct 2023 about New Zealand, issues, permits, buildings, residential, and construction.

The New Zealand Data Center Construction Market report segments the industry into Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, and more.), Electrical Infrastructure (Power Distribution Solution, and more.), Mechanical Infrastructure (Cooling Systems, and more.), Tier Type (Tier-I and II, and more.), and End User (Banking, Financial Services, and Insurance, and more.).

GDP from Construction in New Zealand decreased to 4077 NZD Million in the second quarter of 2025 from 4153 NZD Million in the first quarter of 2025. This dataset provides - New Zealand Gdp From Construction- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Market Size statistics on the House Construction industry in New Zealand

In 2024, there were over ****** business or service entities in the construction industry in New Zealand. The largest number of businesses were in the construction services sector, accounting for over ** percent of all construction industry businesses operating in New Zealand that year.

In 2024, the construction services segment employed the largest share of people in the construction industry in New Zealand, with over 118,700 employees. The building construction sector followed with around half the number of employees.

Graph and download economic data for Production: Industry: Total Industry Excluding Construction for New Zealand (PRINTO01NZA659S) from 1979 to 2024 about New Zealand, IP, and construction.

New Zealand GDP: Construction data was reported at 16,895.000 NZD mn in 2017. This records an increase from the previous number of 15,262.000 NZD mn for 2016. New Zealand GDP: Construction data is updated yearly, averaging 3,541.500 NZD mn from Mar 1972 (Median) to 2017, with 46 observations. The data reached an all-time high of 16,895.000 NZD mn in 2017 and a record low of 452.000 NZD mn in 1972. New Zealand GDP: Construction data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.A005: SNA08: GDP by Industry: ANZSIC06: Current Price.

Number of Businesses statistics on the Institutional Building Construction industry in New Zealand

In 2024, transport construction projects dominated the infrastructure work expected to start in that year in New Zealand, with a value of over ************* New Zealand dollars. In contrast, the value of electricity and gas construction projects was around 100 million New Zealand dollars that year. Infrastructure projects New Zealand’s infrastructure project starts were dominated by transport, water, and subdivision projects in 2024, with the number of transport infrastructure projects commenced coming to over *****. Water projects followed closely at just shy of ***** thousand project commencements. Energy projects, on the other hand, accounted for the lowest share of infrastructure projects started in New Zealand that year, at less than *** percent of all projects. Constructing a climate-resilient infrastructure network Over the years, natural disasters have proved to be a large threat to New Zealand’s infrastructure network, with low confidence among civil construction workers regarding the ability of the country's infrastructure to cope with climate change, as expressed in a 2024 survey. The 2011 Christchurch and 2016 Kaikōura earthquakes saw damage caused to infrastructure and many properties, and in 2023, flooding and Cyclone Gabrielle critically affected several buildings, roads, bridges, and electricity lines. These recent events have shown that the country’s existing infrastructure network and new projects planned must be adapted to withstand climate change, with this topic increasingly discussed in debates among governmental representatives and industry leaders.

In financial year 2024, income created through the sale of goods and services was the largest contributor to New Zealand's building construction industry total income, contributing over ** billion New Zealand dollars. The total income of the building construction industry amounted to around ** billion New Zealand dollars that year.

During the third quarter of 2024, building work in New Zealand was valued at approximately *** billion New Zealand dollars. The highest value throughout the given time period was recorded in the fourth quarter of 2023, having recovered from a significant drop in 2020.

New Zealand Producer Price Index: Weights: Input: Construction: Building data was reported at 8.600 % in 2024. This records an increase from the previous number of 7.800 % for 2023. New Zealand Producer Price Index: Weights: Input: Construction: Building data is updated yearly, averaging 7.000 % from Mar 2015 (Median) to 2024, with 10 observations. The data reached an all-time high of 8.600 % in 2024 and a record low of 4.200 % in 2015. New Zealand Producer Price Index: Weights: Input: Construction: Building data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I015: Producer Price Index: Weights.

Graph and download economic data for Building Permits Issued for Construction for New Zealand (DISCONTINUED) (ODCNPI02NZQ189N) from Q2 1965 to Q4 2013 about New Zealand, issues, permits, buildings, and construction.

Graph and download economic data for Building Permits Issued for Construction for New Zealand (DISCONTINUED) (ODCNPI02NZA189N) from 1966 to 2013 about New Zealand, issues, permits, buildings, and construction.

The House Construction industry plays a vital role in New Zealand's economy, meeting a need for home ownership and rental accommodation while stimulating economic growth. A shift in housing preferences towards medium-to-high-density apartments and townhouses, reflecting an escalation in house and land prices and modern lifestyle choices, is constraining the industry’s long-term performance. Changing government policies on first-home buyer grants, mortgage payment taxation and the promotion of social housing also profoundly affect the industry's performance. During the COVID-19 pandemic, the industry benefited from strong population growth, higher household savings and record-low mortgage rates. Government measures like first-home buyer stimulus, easing loan-to-value (LTV) restrictions and Housing Acceleration Fund (HAF) investments further supported growth. Still, a hike in mortgage interest rates as the Reserve Bank of New Zealand attempted to rein in inflation has choked off housing investment in recent years and slashed new dwelling consents. Given the rollercoaster that homebuilders have been on over the past five years, industry revenue is only expected to edge up at an annualised 0.3%, to $21.0 billion, over the past five years despite contracting by an estimated 2.5% in 2024-25. While some builders thrived during a 2022-23 housing boom, industry profit margins have plummeted in recent years with slumping housing investment. Many builders saw their profit shrink amid climbing input prices and supply chain disruptions, and some builders on fixed-price contracts struggled to absorb the higher input costs. Looking ahead, homebuilders face harsh conditions over the next few years, losing ground to the Multi-Unit Apartment and Townhouse Construction industry. Mounting population pressures support constructing new accommodation, and easing mortgage interest rates will encourage investment in residential building construction and are projected to drive total dwelling consents up by an annualised 2.3%. However, continued growth in house and land prices will drive investment towards medium-to-high-density dwelling options, like duplexes, townhouses, flats and apartments. In light of this, industry revenue is forecast to fall marginally at an annualised 0.2% to $20.9 billion through the end of 2029-30.

New Zealand Building Consents Issued: Value: Non Building Construction data was reported at 28.436 NZD mn in Sep 2018. This records a decrease from the previous number of 33.923 NZD mn for Aug 2018. New Zealand Building Consents Issued: Value: Non Building Construction data is updated monthly, averaging 10.034 NZD mn from Apr 1973 (Median) to Sep 2018, with 546 observations. The data reached an all-time high of 142.034 NZD mn in Feb 2016 and a record low of 0.609 NZD mn in Apr 1973. New Zealand Building Consents Issued: Value: Non Building Construction data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.EA001: Building Consents Issued: By Value.