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New Zealand’s construction industry is showing signs of a recovery, with confidence in the sector beginning to grow for the first time in three years.
According to Stats NZ, construction activity rose 2.7 per cent in the June 2026 quarter, making it the largest contributor to the country’s modest 0.2 per cent increase in gross domestic product (GDP), with residential building and construction driving the rise.
Figures measuring work carried out on buildings tell a similar story. After falling in the March quarter, the volume of building work also rose in June, with residential work increasing by 4.8 per cent and non-residential work increasing by 3.3 per cent.
Builders’ schedules offer another indication of where the industry may be heading.
In the recent Registered Master Builders’ 2026 State of the Sector survey, 68 per cent of members reported a strong or steady pipeline of work, up four percentage points from last year. The proportion of builders who reported very little work on the horizon also fell from 11 per cent last year to six per cent in 2026.’
Despite the increase, 93 per cent of builders surveyed identified rising construction costs as a pressure, while more than two-thirds said consenting delays had affected their projects.
“Conditions are still difficult, but our members are holding their ground,” Master Builders chief executive Ankit Sharma said.
“No one is pretending everything is easy. Cost pressures remain challenging, customers are more cautious and finance and consenting can still make projects harder to get across the line. But what we are seeing is not a sector in collapse; it is a sector in transition, resilient, experienced and adapting to a changing market.”
Last month the Government passed legislation to replace the Resource Management Act, saying the new planning system will make it easier to build homes and infrastructure in the future.
“For too long, the RMA has made it harder and more expensive to build the homes and infrastructure New Zealand needs, develop renewable energy, produce food and fibre, and invest with confidence.
“Homeowners, farmers and businesses will no longer need to seek permission for ordinary low impact activities. Where activities meet the relevant rules and standards, people will be able to get on with them,” Housing and Infrastructure Minister Chris Bishop said.
Existing plans and consent processes will continue during a staged transition, with the full system intended to be operating by 2030.
