Build Insights quarterly report

Welcome to our latest report. You'll find an overview featuring the latest analysis from Build Insights, covering the period from April to June 2025.

While recent OCR reductions are easing mortgage interest rates, broader pressures in the building sector persist.

Housing affordability

• Housing affordability remains a long-term challenge, with land supply and pricing continuing to play a central role.
• The cost to build a house rose by nearly 4% in Q2 compared with Q1 – to $1.06m.
• Median section price rose 0.5%, with notable regional variations.

Subdued pipeline in the short term

• New dwelling consents hold steady at around 34,000 a year.
• $105.6bn of projects in the pipeline – benefits will take time to flow through.

Homeowner satisfaction

• Overall rating of builder performance up 5% year on year.
• First-time home builders 7% more likely to recommend their builder in 2024 compared with 2023.

Productivity and profitability

• Labour productivity fell 1.5% in 2024 compared with 2023.
• Before-tax profit margins fell from 8.1% in 2023 to 7.9% in 2024.

Updated: 1 September 2025