State of the Sector – our annual stocktake

Each year we ask homeowners and builders about their experiences. We launch the results at our Constructive industry forum, and use the insights to shape how we support our members and the wider sector.

2026 survey results

The 2026 survey gathered responses from more than 1,200 people, including over 600 Master Builders members and more than 600 homeowners.The results found homeowners overwhelmingly value what we do. This year, 91% would recommend building to a friend or family member. People still value the ability to create a home that suits their lives.

Our survey shows builders have adapted to mixed, and in some places challenging conditions. Members are more confident in their own businesses than in the wider economy, and most continue to see work ahead. However, weaker demand, persistent cost pressures and consenting delays are narrowing margins and making it harder to turn pipelines into viable projects. Customers still need certainty around finance, cost and timing before they can commit. 

Homeowners back the building experience

Despite a tough few years for the construction sector, New Zealand homeowners continue to give building a strong endorsement:

  • 91% would recommend building to others.
  • 75% experienced no significant delays.
  • 57% completed their project within or under budget.

Among homeowners who experienced significant delays, the common factors included:

  1. Council/building consent issues (49%)
  2. Subcontractor availability (20%)
  3. Weather (20%)
  4. Product/material delays (14%)
  5. Scope or design changes (14%)

When asked what would have helped manage delays, the leading response was more proactive communication, followed by clearer timelines from the start and builder project management support.

Homeowners noted several ways to reduce any cost overruns that do occur, including:

  1. More detailed initial pricing (37%)
  2. Clear communication on optional upgrades (23%)
  3. Early discussion on cost escalation clauses (22%)

Builders were the most-used source of information, with 63% of homeowners turning to their builder for guidance. Communication remains critical: 95% rated it as very important.

Builders hold their ground through a difficult market

Through a challenging period, we are seeing a sector in transition – resilient, experienced and adapting to the changing construction market:

  • 43% expect the New Zealand economy to improve, down from 63% in 2025.
  • 54% expect their own business to improve over the next 12 months.
  • 68% report strong or steady workloads, up from 64% last year.
  • Critically diminished pipelines have fallen from 11% in 2025, to 6%.

Conditions vary across the country, with stronger workloads in Southland and Canterbury, while Auckland and Cook Strait face a softer market.

Having work ahead does not always mean a project can proceed. Builders are managing several pressures at once:

  • Rising construction costs: 93%.
  • Lack of consumer demand: 87%.
  • Access to capital: 78%.
  • Council consenting: 75%.
  • Government regulation: 74%.

Consenting remains a leading cause of uncertainty

Consenting delays continue to hinder productivity:

  • 68% report consenting delays affecting projects.
  • 76% report cost implications due to consenting delays.
  • 40% say the cost from these delays sits within their business.

Speeding up consenting reform was the highest-ranked election priority in the member survey, with a third of respondents placing it first.

While we support high standards, a clearer and more proportionate consenting system would help builders deliver more efficiently and give homeowners greater certainty about when their project will start, what it will cost and when they can move in.

Supporting a more productive and resilient sector

Builders and homeowners agree on what will give them greater confidence to move projects forward: clearer consenting processes, more accessible finance and better communication.  

Master Builders supports practical steps that restore confidence and lift delivery, including:

  • executing consenting reform well
  • collaboration and common standards across Building Consent Authorities
  • embedding proportionate liability
  • implementing risk-appropriate certification for low-risk homes backed by a building guarantee
  • accelerating the adoption of proven digital inspection and site-evidence tools

Previous State of the Sector insights