House Construction in New Zealand - Market Research Report

error_outline Covid-19 Impact Update - House Construction in New Zealand

IBISWorld's analysts constantly monitor the industry impacts of current events in real-time – here is an update of how this industry is likely to be impacted as a result of the global COVID-19 pandemic:

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COVID-19 is anticipated to have a light effect on building construction activity in New Zealand.

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Construction activities are highly labour-intensive, and require input materials, machinery and equipment. Consequently, any disruption in the supply chains of required inputs or a reduction in labour availability have the potential to negatively affect the subdivision.

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Lower oil prices may positively affect this subdivision by reducing operating costs.

Note: The content in this report is currently being updated to reflect the trends outlined above.

House Construction industry trends (2014-2019)

poll Average industry growth 2014–2019: 9.4%

Robust investment in new residential buildings has underpinned the New Zealand economy over the past five years, and assisted the House Construction industry's strong performance. A combination of factors have driven accelerated growth in housing investment, including stronger population growth stemming from an increased migrant intake, and mortgage interest rates declining to historically low levels. Investment in the reconstruction of Christchurch following the 2011 earthquake has also underpinned the industry's performance. Industry revenue is expected to increase at an annualised 6.5% over the five years through 2019-20, to reach $14.8 billion. However, the pace of revenue growth is projected to slow to just 0.3% in the current year, in response...
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House Construction industry outlook (2019-2024)

poll Average industry growth 2019-2024: x.xlockPurchase this report or a membership to unlock the average company profit margin for this industry.

The House Construction industry's performance is forecast to contract over the next five years. Underlying demand for new housing is projected to weaken as population growth slows and interest rates rise. Additionally, the stimulus derived from reconstruction activity in the Canterbury region is anticipated to weaken. New housing investment is projected to decline from XXX-XX onwards as rising mortgage interest rates discourage prospective investors. Slowing population growth is anticipated to negatively affect the household formation rate and demand for new housing. Industry revenue is forecast to decline by an annualised X.X% over the five years through XXX-XX, falling to $XX.X billion. Revenue is anticipated to fall despite further growth in capi...
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House Construction industry statistics

  • attach_money Market Size: $15bn
  • business Number of Businesses: 17,848
  • poll Average Industry Profit Margin: x.x%
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  • supervisor_account Industry Employment: 26,669

Biggest companies in the House Construction industry

The House Construction in New Zealand industry has no companies with major market shares. Get the full report to find out why.

What is House Construction industry?

Industry Definition

The industry consists of companies that mainly construct houses (excluding apartments and townhouses) 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.

Industry Products and Services

  • New housing construction
  • Housing alterations, additions and improvements
  • Housing repairs and maintenance
  • Other services
  • All Others

Industry Activities

  • House construction
  • House alteration, renovation and general repair
  • Prefabricated house on-site assembly, erection and installation
  • Garage construction
  • Project management

Market research report - table of contents

Industry Definition

The industry consists of companies that mainly construct houses (excluding apartments and townhouses) 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.

Main Activities

  • House construction
  • House alteration, renovation and general repair
  • Prefabricated house on-site assembly, erection and installation
  • Garage construction
  • Project management

Similar Industries

Additional Resources

Industry Statistics Snapshot

Industry Structure

Executive Summary

Key External Drivers

Capital expenditure on private dwellings indicates demand for new housing construction in New Zealand, alongside spending on alterations, additions and re...
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Capital expenditure on residential buildings
Population
Residential housing loan rates
Dwelling consents issued

Current Performance

Housing preferences
Christchurch reconstruction
KiwiSaver boost
Profit and participation
 Chart: Revenue Growth

Industry Outlook

Slower population growth
Demand constraints
 Table: House Construction in New Zealand - Market Research Report Industry Revenue Outlook

Industry Life Cycle

Life Cycle Reasons
 Chart: Benchmarking - House Construction in New Zealand - Market Research Report Industry Lifecycle vs The Economy

Supply Chain

Key Buying Industries

Superannuation Funds in New Zealand
Banking in New Zealand
Consumers in New Zealand




Key Selling Industries

Site Preparation Services in New Zealand
Timber Wholesaling in New Zealand
Agricultural and Construction Machinery Wholesaling in New Zealand
Heavy Machinery and Scaffolding Rental and Hiring in New Zealand
Hardware Wholesaling in New Zealand


Products & Services

The industry mainly derives revenue from work on new housing construction. However, demand in this market fluctuates significantly in line with the housin...
First home buyers
Property developers and speculators
Public sector



Demand Determinants

Demand for housing construction is subject to a range of short and long-term factors. However, the most important determinant of the industry's activity o...
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Major Markets

First home buyers
Property developers and speculators
Public sector




 Chart: Major Market Segmentation for the House Construction in New Zealand - Market Research Report Industry

International Trade

Business Locations

Chart: Business Locations by State Chart: Business Locations by State

Market Share Concentration

The House Construction industry has a low concentration of ownership. It has a highly fragmented structure, including numerous small-scale firms that cont...
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Key Success Factors

Cost Structure Benchmarks

Profit, Purchases, Wages, Other Costs
 Chart: Cost Structure Benchmarking – Sector vs House Construction in New Zealand - Market Research Report

Basis of Competition

Internal competition
External competition

Barriers to Entry

 Table: Barriers to Entry Checklist for the House Construction in New Zealand - Market Research Report Industry

Industry Globalization

The House Construction in New Zealand industry has no major companies. Get the full report to find out why.

Capital Intensity

The House Construction industry has a low capital intensity. The principal value added by the industry comes from providing project management and trade s...
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 Chart: Level of Capital Intensity for the House Construction in New Zealand - Market Research Report Industry
 Chart: Tools of the Trade: Growth Strategies for Success

Technology & Systems

Revenue Volatility

Chart: Volatility vs Industry Growth Chart: Volatility vs Industry Growth

Regulation & Policy

Industry Assistance

Table: Industry data Table: Industry Data for the House Construction in New Zealand Industry

Industry Revenue (2006-2026)
Industry Gross Product (2006-2026)
Establishments (2006-2026)
Businesses (2006-2026)
Employment (2006-2026)
Exports (2006-2026)
Imports (2006-2026)
Wages (2006-2026)
Domestic Demand (2006-2026)

Table: Annual Percentage Change for Key Industry Data Table: Annual Percentage Change for Key Industry Data

Table: Key Ratios for Industry Key Dat Table: Key Ratios for Industry Key Data

Table: Industry Financial Ratios Table: Industry Financial Ratios

Liquidity Ratios
Coverage Ratios
Leverage Ratios
Operating Ratios
Cash Flow & Debt Service Ratios (% of Sales)
Assets, %
Liabilities, %

BUILDING CONSENT

KIWISAVER HOMESTART

MORTGAGE

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Included in Report

  • Industry Financial Ratios
    Industry Financial Ratios
  • Revenue Forecasts
    Revenue Forecasts
  • Historical and Forecast Growth
    Historical and Forecast Growth
  • Industry Market Size
    Industry Market Size
  • Industry Major Players
    Industry Major Players
  • Profitability Analysis
    Profitability Analysis
  • SWOT Analysis
    SWOT Analysis
  • Industry Trends
    Industry Trends
  • Industry Operating Conditions
    Industry Operating Conditions
  • Porter's 5 Forces Analysis
    Porter's 5 Forces Analysis

Why buy this report on the House Construction industry?

IBISWorld industry market research reports enable you to:

  • Find out about key industry trends
  • Identify threats and opportunities
  • Inform your decisions for marketing, strategy and planning
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This report on House Construction in New Zealand:

  • Provides Market Size information to assist with planning and strategic decisions.
  • Includes the necessary information to perform SWOT, PEST and STEER analysis.
  • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
  • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.

The House Construction in New Zealand market research report includes:

  • Historical data and analysis for the key drivers of this industry
  • A five-year forecast of the market and noted trends
  • Detailed research and segmentation for the main products and markets
  • An assessment of the competitive landscape and market shares for major companies
  • And of course, much more

IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on House Construction in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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