The number of new homes being authorised has slumped to the lowest level in more than 20 years.
Building statistics released today show there were just 1127 housing units consents last month, the lowest monthly total since January 1987.
There were 126 new apartment units among those.
The
number of authorised new housing units had fallen 49 per cent since the June 2007 peak, Statistics New Zealand said.
For the year ended December 2008, there were 18,456 new housing units authorised, down 7134 from the previous year.
ASB economist Jane Turner said that falling house prices and low immigration had reduced the incentives to build.
"In addition, rising unemployment and tight credit conditions have dampened the stimulatory effect of lower interest rates. However, the fall in interest rates appears to have helped house sales to tentatively form a bottom, suggesting the further declines in dwelling consents will be more moderate."
Of the larger regions, Auckland, Canterbury and Waikato showed sharp drops from last year, while Otago and Wellington showed only showed minor drops.
The value of consents fell from $6.4 billion to $4.9b during that time.
The statistics showed a trend of a reasonably steady annual issuing of consents since 2003 leading up to the sharp 2008 drop.
For the year ended December 2008, the value of consents issued for residential buildings fell $1.5b (20 per cent), while the value for non-residential buildings rose $322 million (7.7 per cent), compared with the year ended December 2007.
The growth appeared to be in the development of office buildings, educational facilities and factories, while the building of shops, restaurants and taverns fell sharply.
Monthly data for December showed the value of consents issued for all buildings was $827m - down 5.7 per cent from the previous December.
- NZPA
