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.

2025 survey results

We surveyed around 1,000 Master Builders members and their homeowners.

Homeowners told us that, even in challenging conditions, building can be a rewarding experience. Two-thirds had a positive journey, which speaks to the professionalism of our Master Builders across the country.

There are signs we are entering a new phase of the economic cycle – one that still carries risk, but also real momentum. Whilst the recovery is patchy, and some builders are still finding it tough, there is a sense that the sector is shifting from surviving, to delivering at a scale that secures the future, and the country’s growth trajectory.

Homeowner experiences positive overall

Despite a tough few years for the construction sector, most New Zealand homeowners described their recent build as a positive experience:

  • Two-thirds were satisfied overall.
  • 72% reported no significant delays.
  • 87% would recommend building to others.

When there were delays, they were most often caused by factors beyond the builder’s control:

  • consenting (56%)
  • subcontractor availability (26%)
  • weather (24%)
  • product / material delays (16%)
  • scope or design changes (6%)
  • finance-related hold-ups (3%)

Most projects came in on or under budget, with only 37% running over, mainly due to:

  1. scope and design changes
  2. unclear initial estimates
  3. product price increases.

Homeowners identified clear ways to reduce overruns, including:

  1. more detailed initial pricing
  2. clearer optional upgrades
  3. early conversations about escalation clauses
  4. regular budget tracking.

Communication remains pivotal: 93% rated good communication as very important.

We offer practical advice for homeowners to help make their new build or renovation a success.

Building and renovating your dream spaces

Construction sector showing cautious optimism

Builders are starting to take a more positive view of the year ahead:

  • 63% think the overall economy will improve within 12 months.
  • 62% expect their own businesses to be in better shape by the end of 2026.

This is showing up in workloads, with 64% of builder reporting strong or steady order books, up from 51% last year. Those facing a critical drop‑off in work have fallen to 11% from 15%.

Conditions remain uneven, with the Southern region improving more quickly whilst Wellington and Auckland still face headwinds.

The most critical constraints for the sector were:

  1. rising construction costs
  2. finance (inflation and high interest rates)
  3. government regulation
  4. council consenting
  5. soft consumer demand.

Consenting delays continue to hinder productivity for builders:

  • 70% percent work with more than one Building Consent Authority.
  • 72% have experienced ‘stop‑the‑clock’ requests beyond the 20‑day statutory timeline.
  • One in four faced 10 or more requests for additional information before achieving Code Compliance Certificate.

Advocating for practical improvements

Builders and homeowners are telling the same story: when consenting works, communication is clear, and finance is accessible, projects move faster, and experiences are better.

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