Building industry singing the home improvement blues as alteration work declines

The shine appears to be coming off the home renovation market, with the number of building consents issued for residential building alterations and their average value both in decline, according to Statistics NZ figures.

A building consent is required when work involves structural alterations to a building, such as adding or extending a room, rather than mere redecoration such as painting or upgrading fixtures and fittings.

In the 12 months to May this year, consents were issued for 24,877 residential building alterations, down from 26,011 in the 12 months to May 2024, 27,807 in the 12 months to May 2023 and 31,118 in the 12 months to May 2022.

That’s a decline of 6241 (-20.1%) over the last three years and means residential alteration consents are now at their lowest level since 2013.

The record high for alteration consents, in figures which go back to 1991, was 34,243 in 2007.

The average value of the alterations consented peaked at $94,538 in the 12 months to May last year, then dropped back to $87,518 in the 12 months to May this year.

That suggests that not only are fewer alteration projects being undertaken, the average amount being spent on them is also in decline.

The total value of residential alteration work consented has declined from a peak of $2.523 billion in the 12 months to may 2023, to $2.177 billion in the 12 months to may this year, a decline of $346 million (-13.7%) over the last two years.

The slowdown in residential alteration work is adding to the residential construction sector’s woes, with the number of new dwellings being consented declining by almost 32% over the last three years.