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Consent figures over the last two years show a real shift in the nature of dwelling type. Medium density housing now accounts for almost a third of building consents, up 20% from 2018. However, it is worth noting that we haven’t seen any drop in the number of standalone homes being built. Townhouses and units are making up the bulk of the growth of the market, while standalone houses remain stable.

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Townhouses and units now sit at half the number of consents for standalone houses, however, the story is playing out differently depending on the region. Auckland accounts for 65% of all townhouses and units consented to February 2021, and for the first time consents for medium density housing exceeded the number of consents for standalone houses in Auckland. Outside of Auckland, Canterbury shows the most growth in medium density housing, though it is still just one fifth the size of Auckland in absolute terms.

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With the shift to townhouses we are seeing a lower average floor area. Given that medium density housing is in addition to (rather than replacing) standalone housing, this still means that
supply might be tight for those builds. However, if we start to see a shift away from standalone housing in favour of medium density, this might start to ease some of the supply issues the industry has experienced post-Covid.

Data source: Statistics NZ Building Consents data


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