House Construction in New Zealand - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: March 2024
ANZSIC E3011NZRevenue
$21.8bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
34,274
Businesses
22,819
Wages
$X.Xbn
House Construction in New Zealand industry analysis
The House Construction industry plays an integral role in New Zealand's economy, meeting a need for home ownership and rental accommodation while having multipliers stimulating economic growth. Builders construct single-unit (detached) houses and renovate and repair existing homes. The industry's long-term performance is constrained by a shift in housing preferences towards high-to-medium density apartments and townhouses, which reflects an escalation in house and land prices and changing lifestyle choices.
Trends and Insights
- House construction is set to plummet in 2023-24 in response to the hike in mortgage interest rates and tighter bank lending practices. Some contractors will benefit from the boost in affordable housing construction under the Housing Acceleration Fund.
- New housing construction surged to a record peak in 2021-22, lifting activity in this market. Still, the recent hike in mortgage interest rates and less favourable bank lending practices will drive down new house construction in 2023-24.
- There is a heavy skew in house-building establishments towards New Zealand’s most populated region, Auckland. Still, the region is under-represented in total employment, which indicates a lower-than-average employment per enterprise.
- The emergence of franchise operations, like G.J. Gardner Homes and Golden Homes, raised competitive intensity. Franchise groups can deliver scale economies in housing design, marketing and procurement.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.6 % over the past five years, to reach an estimated $21.8bn in 2024.
Trends and Insights
Housing investment plunges from dizzying heights
- New Zealand's House Construction industry surged to dizzying heights while the COVID-19 pandemic prevailed, supported by historically low mortgage interest rates, Central Government (Te Kāwanatanga o Aotearoa) stimulus packages and the easing of bank debt-to-income limits.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Housing investment falls despite lower interest rates
- Homebuilding contractors face adverse conditions in most regional markets through 2028-29 despite the easing in residential home loan rates and the slight improvement in housing affordability.
Biggest companies in the House Construction in New Zealand
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Fletcher Building | 436.0 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including New housing construction, Housing alterations, additions and improvements and Housing repairs and maintenance. New housing construction is the largest segment of the House Construction in New Zealand.
Trends and Insights
New housing surged to a record peak
- New house construction is expected to climb as a share of industry revenue through 2023-24, despite a sharp contraction from the record peak in 2021-22 stemming from the hike in mortgage interest rates and less favourable bank lending practices.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Multi-Unit Apartment and Townhouse Construction in New Zealand
Complementors
- Construction
- Institutional Building Construction in New Zealand
- Commercial and Industrial Building Construction in New Zealand
International industries
- Home Builders in the US
- Remodeling in the US
- Housing Developers in the US
- Homebuilders in Canada
- House Construction in Australia
Table of Contents
About this industry
Industry definition
The industry consists of companies that mainly construct single-unit (detached) houses or carry out alterations, additions, renovations or general repairs to houses. It also includes operators that organise and manage these activities as the prime building contractor.
What's included in this industry?
New housing constructionHouse alterations, additions and improvementsHousing repairs and maintenanceLand developmentCompanies
Fletcher BuildingPurchase this report to view all 1 major companies in this industry.
Related Terms
BUILDING CONSENTMORTGAGEKIWISAVER HOMESTARTPERSONAL PROTECTIVE EQUIPMENT (PPE)HOUSING ACCELERATION FUND (HAF)Industry Code
ANZSIC 3011 - House Construction in New Zealand
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
House construction is set to plummet in 2023-24 in response to the hike in mortgage interest rates and tighter bank lending practices. Some contractors will benefit from the ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
New housing construction surged to a record peak in 2021-22, lifting activity in this market. Still, the recent hike in mortgage interest rates and less favourable bank lendi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
There is a heavy skew in house-building establishments towards New Zealand’s most populated region, Auckland. Still, the region is under-represented in total employment, whic...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The emergence of franchise operations, like G.J. Gardner Homes and Golden Homes, raised competitive intensity. Franchise groups can deliver scale economies in housing design,...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry has no Major Companies since it comprises many small-scale contractors servicing narrow regional markets. There are several significant homebuilding companies, b...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Fletcher Building's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Fletcher Building, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The recent hike in mortgage interest rates has discouraged buyers from entering the housing market and choked off new dwelling consents. Still, the slump in residential housi...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Pandemic-related supply chain disruptions have inflated building material and equipment prices. Builders have endured delays in input delivery and profit margins have narrowe...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in New Zealand include:
- Statistics New Zealand
- New Zealand Company Register
- Ministry of Business, Innovation & Employment
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the House Construction industry in New Zealand in 2024?
The market size of the House Construction industry in New Zealand is $21.8bn in 2024.
How many businesses are there in the House Construction in New Zealand industry in 2024?
There are 22,819 businesses in the House Construction industry in New Zealand, which has grown at a CAGR of 3.7 % between 2019 and 2024.
Has the House Construction industry in New Zealand grown or declined over the past 5 years?
The market size of the House Construction industry in New Zealand has been growing at a CAGR of 3.6 % between 2019 and 2024.
What is the forecast growth of the House Construction industry in New Zealand over the next 5 years?
Over the next five years, the House Construction industry in New Zealand is expected to decline.
What are the biggest companies in the House Construction market in New Zealand?
The biggest company operating in the House Construction market in New Zealand is Fletcher Building
What does the House Construction in New Zealand include?
New housing construction and House alterations, additions and improvements are part of the House Construction industry.
Which companies have the highest market share in the House Construction in New Zealand?
The company holding the most market share in New Zealand is Fletcher Building.
How competitive is the House Construction industry in New Zealand?
The level of competition is high and steady in the House Construction industry in New Zealand.
