SR247 Cost efficiencies of standardised new housing (2018)

This report examines the efficiencies involved in the use of standardised designs compared to one-off designs for new detached housing. The firm size structure of the house building industry is analysed and compared to the types of house the different groups build and their prices in $ per square metre of floor area. Housing features that add to cost are identified via a survey of builders.

The New Zealand house building industry is characterised by quite small-scale builders, with an estimated 60% of all new housing being built by builders constructing fewer than seven houses per year. Most of these small builder houses are one-offs, i.e. designed to incorporate specific requirements of the owner. Larger builders tend to erect more standardised designs, which can be 'customerised' to a great or lesser extent. These group builder homes tend to have a lower cost than one-offs.

This report identifies the costs savings with standard design and the design features to be avoided that can increase costs.