Almost 38,000 new homes were consented in the year to October 2020, the highest number since 1974, boosted by more townhouses, flats, and units, Stats NZ has today announced.

The number of new homes consented in the year to October 2020 was 37,981, up 2.8 per cent from 2019.

'Annual new homes consented reached 37,000 late in 2019 and are now close to 38,000 for the first time in decades,” says construction statistics manager Michael Heslop.

The all-time high for annual home consents was 40,025 in the February 1974 year.

The rise in new homes consented was driven by strong growth in plans to build townhouses, flats, and units in the past year.

'Typically, high levels of new homes consented are followed by high levels of building activity in following quarters,” Michael says.

'Consents indicate an intention to build, and most home construction is completed within a year or two after a consent is granted, though delays due to COVID-19 may have occurred for some projects.”

However, the rate of home building now is still lower than the peak in 1973 when population size is considered.

In the October 2020 year, 7.5 new homes were consented per 1000 residents, around the highest per capita rate for 15 years.

The record was in December 1973 year at 13.4 new homes per 1000 residents.

The median annual number of new homes consented is 22,641, and 6.2 for the number of new homes consented per 1000 residents.

'More homes are being planned, but demand has also increased as our population has grown,” Michael says.

The number of new homes consented per 1000 residents allows Stats NZ to factor in population size, which has changed significantly since the start of the series.

Squeezing in more homes

The annual number of townhouses, flats, and units consented has risen significantly (up 35.6 per cent in the year to October 2020).

The number of new stand-alone houses consented has remained relatively flat (down 0.5 per cent in the October year). Apartment numbers fell by 22.5 per cent, and retirement village units by 24.5 per cent.

Consents for apartments usually cover homes that are vertically attached, whereas townhouses, flats, and units can include those which are horizontally attached as well as minor or secondary homes.

'The proportion of new homes consented that are townhouses, flats, or units has been increasing. Auckland in particular has seen rapid changes in the composition of new homes consented,” Michael says.

In the past year about 6000 townhouses, flats, and units were consented in Auckland, almost 60 per cent of the New Zealand total.