A quarter of a million new houses are projected to be in the pipeline over the next five years, according to new forecasts.
Non-residential and industrial construction was also forecast to pick up, with non-residential being worth $10.3b and industrial worth $11.2b by the end of 2026, similar to peaks seen in 2019. Photo: RNZ / Angus Dreaver
The Ministry of Business Innovation and Employment's National Construction Pipeline Report shows residential buildings contributed 58 percent of the country's total construction value in 2020, worth $24.5 billion.
The report forecast 265,000 new dwellings would be consented between now and December 2026.
Minister for Building and Construction Poto Williams said demand for housing would continue to play a lead role in recovering from Covid-19 and would help boost the construction sector's value to about $48.3b in 2024.
Last year the sector's value dropped slightly due to the impact of lockdowns, but it had not stopped plans entirely.
"Due to the Covid-19 pandemic, rather than seeing very many cancellations, visitor accommodation projects have been put on hold or delayed, in some cases by several years. This has kept the overall pipeline high," the report said.
Non-residential and industrial construction was also forecast to pick up, with non-residential being worth $10.3b and industrial worth $11.2b by the end of 2026, similar to peaks seen in 2019.
Industrial projects would largely be transport, water and subdivision projects.
Construction Sector Accord director Dean Kimpton said the forecasts were extraordinary and should give the sector confidence to invest and make changes.
"As a sector we need to get ahead of the game. We need to invest in our people and cast a wider, more diverse net on recruiting. We need to up our game on innovation. We need to accept that climate change also means a change in how we build.
At the Accord we think this strong pipeline should give the sector confidence about the changes that are needed. The work is there. The investment will be worth it."
The construction sector was now the fourth-largest largest employer in the country employing over 280,000 people for the year ended September.