Builder Sentiment

AUGUST 2024, NZ — Builders have been significantly impacted by the current slowdown in the construction industry. Two‐thirds of respondents report struggling with decreased demand, and only 12% have seen an increase in demand compared to last year.

Smaller construction firms are facing particularly tough conditions, with a low current workload and a much shorter project pipeline than their larger counterparts. New leads and enquiries are notably lower for these builders.

A combination of factors — rising interest rates, increased material costs, and broader economic conditions — has led to a decrease in construction demand, perpetuating a cycle that has already led to the closure of several builder businesses.

Looking ahead, this downturn is expected to persist over the next 12 months, as indicated by a net -48 in leads and enquiries, signifying a continued slowdown rather than stabilisation or growth.