The current high level of new homes being built in Auckland probably won't last
By Greg Ninness
The number of new homes being completed in Auckland remains at record levels, in spite of the fact that the number of residential building consents being issued in the region has taken a dive.
Auckland Council issued 1482 Code Compliance Certificates (CCCs) for new dwellings in March this year, which was the third highest number in any month since the Council began collating the figures in their current format in January 2013.
CCCs are issued when a building is completed, so are the most accurate indicator of new housing supply, unlike building consents which are usually issued before construction commences.
Although the number of new homes completed in Auckland in March has been exceeded twice before, in November 2020 and June 2021, the total number of new homes completed in Auckland in the 12 months to March (14,321) and the rolling 12 month average (1292 - see graph below) both matched the previous record high set in June 2021.
The new dwelling completion figures are in stark contrast to the building consent figures for Auckland, with the number of new dwellings consented in the region in the first quarter of this year down 19.2% compared to the first quarter of last year, suggesting a looming downturn in residential construction.
The high CCC numbers suggest building companies and their suppliers will have been kept busy with residential work already in the pipeline, but may find it more difficult to find new projects to take on as existing ones are completed.
However some of the slack created by the downturn in consents is likely to have been taken up by post cyclone recovery work, which could make the economic effects of the pending downturn slower to show up in areas such as employment.
In the meantime though, the supply of new homes in Auckland continues to roll out at pace.
This story was originally published on Interest.co.nz and has been republished here with permission.