A new QV CostBuilder study shows building costs have increased at an average rate of 44 per cent over the past four years. The study looked at the comparative cost of building a standardised 150m² home across six main urban centres – Auckland, Wellington, Christchurch, Dunedin, Hamilton and Palmerston North. It showed construction costs have increased by the largest percentage in Dunedin 47.1 per cent since 2020, followed by Palmerston North at 46 per cent. In Auckland, construction costs increased by the smallest margin at 39.4 per cent. Christchurch at 40.5 per cent wasn’t far behind, with Hamilton at 44.8 per cent sitting just above average. In real dollar terms, Wellington had the largest average increase in the cost to build a home; its average build cost increased by $900 per square metre in five years. As a percentage, the cost of building a home in the capital increased by an average of 45.9 per cent since 2020. The rate of building cost inflation has slowed markedly in recent years. Last year was a different story – costs increased at a rate of between 0.7 per cent and 2.2 per cent across the six main urban areas.

The smallest percentage increases were in Auckland and Hamilton at 0.7 per cent each. Palmerston North at 2.2 per cent had the biggest increase last year. The standard home was based on three or four bedrooms, with one or two bathrooms.