Worst February for new homes since 2012 reported.
The National Government's policies have led to a significant decline in building consents, according to recently released statistics. In the year ended February 2025, only 33,595 new homes were consented in Aotearoa New Zealand, representing a 7.4 percent drop from the previous year.
Labour housing and infrastructure spokesperson Kieran McAnulty attributed the slowdown to the Government's decision to stop building Kāinga Ora houses and cut funding for public house building and maintenance by $1.5 billion. The reintroduction of interest deductibility, allowing property investors to claim 100 percent of mortgage interest back, has also been criticized as removing incentives for private sector investment in new builds.
The decline in building consents is not only affecting the pace of construction but also resulting in a significant loss of jobs within the industry. More than 13,000 construction workers have lost their jobs since the National Government took over, with Chris Bishop facing criticism for his inability to deliver on promises of increased home building.