Residential construction in New Zealand dropped to a ten-year low as high mortgage rates and global uncertainty dented demand for new homes and renovations, Statistics New Zealand said. Activity fell 5% in the 12 months to March, the weakest March annual reading since 2016 and about 25% below the 2023 peak. A period of elevated borrowing costs, plus geopolitical concerns and a global energy shock that squeezed household incomes, have reduced buyer confidence; falling prices have left developers

Residential construction in New Zealand dropped to a ten-year low as high mortgage rates and global uncertainty dented demand for new homes and renovations, Statistics New Zealand said. Activity fell 5% in the 12 months to March, the weakest March annual reading since 2016 and about 25% below the 2023 peak. A period of elevated borrowing costs, plus geopolitical concerns and a global energy shock that squeezed household incomes, have reduced buyer confidence; falling prices have left developers reluctant to start new projects and homeowners unwilling to sell and reinvest. An increase in building consents suggests a potential recovery, but the medium‑term outlook remains uncertain.