Auckland, Thursday 11 September 2025: Despite a tough few years for the construction sector, most New Zealand homeowners describe their recent build as a positive experience. Two-thirds say they were satisfied overall, with the biggest challenge being council consenting, according to annual 2025 State of the Sector of around 1,000 master builders and their homeowners.
Despite the negative media narrative over the past few years, the survey found that 72% of homeowners reported no significant delays with their builds. Where there were delays, this was most often caused by consenting, though subcontractor and product availability and weather also played a role – factors outside of the builder’s control. Encouragingly, most projects came in on or under budget, with only 37% running over mainly due to scope or design changes, unclear initial estimates, and product price increases.
CEO of Master Builders, Ankit Sharma, said the results show a sector that is resilient and professional, but still held back by systemic issues:
“Homeowners are telling us that, even in challenging conditions, building in New Zealand can still be a rewarding experience. Two-thirds had a positive journey, which speaks to the professionalism of our Master Builders across the country.
“But we cannot be complacent, there are also areas where improvements can lift the sector further - faster consenting, clearer pricing, and stronger communication. If we get these fundamentals right, not only do projects move more smoothly, but trust and confidence in the whole sector grows,” Sharma said.
Homeowners identified clear ways to reduce overruns, including more detailed initial pricing (35%), clearer optional upgrades (19%), early conversations about escalation clauses (17%), and regular budget tracking (15%). Communication remains pivotal: 93% rated good communication as very important, and 87% said they would recommend building to others, despite the challenges.
“These are promising results, and the sector should be proud. What’s also very good news is that our members are starting to feel more optimistic about the future,” Sharma said.
Data from the 2025 stocktake shows builders are starting to take a more positive view of the year ahead: 63% think the overall economy will improve within 12 months and 62% expect their own businesses to be in better shape come the end of 2026. This is beginning to show up in workloads, with 64% reporting strong or steady order books, up from 51% last year. While 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.
“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 we cannot overlook there are building companies across the country who are still finding things tough, however, there is a general sense that the building sector is shifting from surviving, to delivering at a scale that secures the future, and the country’s growth trajectory,” Sharma said.
Rising construction costs remain the number‑one constraint for the sector, followed by access to finance, with consenting and soft consumer demand rounding out the top concerns.
Consenting delays continue to hinder productivity. 70% percent of the sector work with more than one Building Consent Authority (BCA), 72% have experienced ‘stop‑the‑clock’ requests beyond the 20‑day statutory timeline, and one in four have faced 10 or more requests for additional information before achieving Code Compliance Certificate.
Master Builders is supportive of practical steps that restore confidence and lift delivery. Executing consenting reform well, including BCA collaboration and common standards, embedding proportionate liability and implementing risk appropriate certification for low‑risk homes backed by a building guarantee. Master Builders also acknowledges the importance of accelerating the adoption of proven digital inspection and site‑evidence tools such as Artisan.
“Builders and homeowners are telling us the same story: when consenting works, communication is clear, and finance is accessible, projects move faster, and experiences are better. We’re ready to partner with Government, councils, and lenders to turn today’s cautious optimism into a sustained recovery,” Sharma said.