The Premium Debate: Subscriber views on the rising cost of building new homes in Tauranga

Building costs have skyrocketed in Tauranga. Photo / Getty Images

A "perfect storm" of pressures has seen the cost of building an average house in Tauranga skyrocket by about $130,000 in the past year, the head of a major building company estimates. Higher prices for land and building materials are among the leading contributors.

Talking about increased building materials is a government smokescreen. Auckland council fees and charge-out rates have gone out of control, they are looking to charge $84k per section to developers to cover infrastructure costs, and the building dept fees are $195/hr.
- Graham M

In reply to Graham M: Auckland Council is not alone here, need to look into other councils as well including Hastings District Council. Section prices are exploding every time a new block is opened up.
-Allen S

The Government falsely persecuted property investors for being the reason house prices are so high. Construction inflation is close to 30 per cent so anyone with a working brain will understand that prices will have to increase substantially. First-home buyers will despair and head to Australia. Printing of money, the real reason for house price increases, has come at a huge cost to society.
-Mark I

Imagine if you had a shortage in supply of housing and one cost you could control as a Government is labour supply. Imagine then if your Government decided now was a good time for immigration reset - that sounds crazy right?
- Jan W

Parts of the world are in a massive economic boom, triggered by huge consumption of just about everything. That means factory capacity is very tight, especially as many of the main hubs are in various bad stages of the Covid battle. Vietnam, Malaysia, India, Indonesia, Cambodia, Thailand for example. China, where I am, is the stand-out on Covid and manufacturing capacity, but shipping costs from Asia are almost 5x those of last year and climbing. Trying to book containers and ships can be a bidding war these days. This is a huge global problem that tiny NZ can't fix, so be prepared for more pain in the foreseeable future.
-Marcus H

Add to that another week's sick leave and a public holiday.
-Anaru B

Steel prices have actually increased by over 100 per cent in the last 12 months, but haven't filtered through to NZ consumers yet. There is another 90 per cent increase still to go, so they haven't seen nothing yet.
-James P

Hey not to mention TCC permit fees having increased from $12,000 to $30,000.
-Mark W

Everything about the state of housing in New Zealand at this minute leads straight back to Jacinda's "Lets do this" and the Labor Govt. I have just had some figures for a new build and due to the state of supply for materials and consents even if we can get either will be at least 12 months to 18 months before we can maybe even start. The promised RMA reforms are still a myth, skilled and unskilled labour is a pipe dream and level three lockdowns have withered the output from the factories where the gib board etc is made.
-Roy H

In reply to Roy H: Are you sure it's not because of all property speculators that vote for Collins pushing up prices?
- Colin T