How much does it cost to build a home in 2024?

Following the dramatic rise in building costs over the past few years, many Kiwis are hesitant to build a home. Fortunately, the industry is beginning to recover and 2024 is projected as a great time to build.

In this article, we share the current cost of building in New Zealand and highlight the latest trends in the industry. We also discuss the various ways to reduce your project costs, along with the current prices of our prefab homes. 

The average cost of building a house NZ

According to data published in the latest Cordell Construction Index in January 2024, the cost of building a new home is rising. In 2023, New Zealand experienced annual building cost inflation of 2.4%, the slowest annual growth rate since 2016. This indicates that the pressure on the industry is finally beginning to ease. 

*Please note that this data excludes fees, project management, and land prices. 

As the annual growth rate slows down and fewer building consent applications are submitted, pressure on builders and trades is subsiding. Compared to the past two years, we expect this to result in smoother consent timelines and fewer material supply shortages.

Building costs per square metre

Taken from the Canstar data published in October 2023, the latest building costs are as follows, showcasing the average total price and price per square metre for each region:

*This data is based on data published by Canstar in October 2023 on mortgages.co.nz.

Building consent costs

The cost of building consent varies between councils and depends on the size of the house and the complexity of the project. To find out the specific consent costs of your project, visit your local council’s website.

In January, there were 1,991 new dwelling consents in New Zealand, including 899 stand-alone houses, 899 townhouses, flats, and units, 123 apartments, and 70 retirement village units. As builders continue to catch up on previously approved dwellings from the 2022 construction boom, pressure on the industry is easing. 

Labour costs

In construction projects, wages typically account for about 40% to 50% of the total cost. Fortunately, wages are expected to flatten in 2024, continuing the trend from 2023. According to the Cordell Building Indices, material and labour costs to build a standard home* only rose by 0.8% in Quarter 4. 

*This data is based on a 200m² concrete slab, brick veneer, concrete tile roof house. 

How to reduce building costs

• Use a prefab home builder that offers fixed-price builds. 

• Use an existing plan.

• Build a smaller home.

• Be clear and specific in the design phase. 

• Choose standard fixtures and finishes.

New home build – Architect, building company, or prefab?

The cost of a new house will depend on whether you work with an architect, group home builder, or prefab building company. 

• Architects: Generally, architects charge based on a percentage of the entire project value, ranging from 3% to 12%. These projects are also prone to delays in the consent process which will raise unexpected costs. 

• Building companies: Typically, building companies offer turnkey packages that are more cost-effective than working with an architect but construction is still prone to delays, high labour costs, and budget blowouts. 

• Prefab homes: Our prefabs come as a turnkey package complete with all house design, planning, project management, and construction as one complete fixed-price package. 

At Genius Homes, the base costs for our prefab homes are fixed and final, starting at around $145,000. We’ll also outline the location-based costs, including delivery and site works after your site visits have been completed. 

Pros and cons of prefab homes 

Before building your new home, it helps to know all the pros and cons of your chosen construction method. At Genius Homes, we believe in full transparency so we’ve outlined the key considerations below: 

Benefits of a prefab house:

• Controlled environment

• Environmentally-friendly

• Faster than traditional construction

• Customisable designs

• Progress updates

• Affordability

• Materials are unaffected by the elements

Potential challenges:

• Securing financing may be trickier.

• Finding buildable land. 

• Delivery and site work are additional costs.

You can find more information on the pros and cons of prefab homes in our article here

Prefab home loans

If you build a prefab with us, we can help you access a prefab loan through BNZ. These loans are specialised for prefab construction, ensuring all the work is paid for on time. 

Find out more about our exclusive prefab loans here

Our prefab home prices

Are you still wondering how much to build a new home? Check out our list of house prices below!

• 4 bedroom house designs start at $503,415 including GST.*   

• 3 bedroom house designs start at $372,295 including GST.*

• 2 bedroom house designs start at $149,500 including GST.* 

• 1 bedroom house designs start at $119,500 including GST.*  

*Prices are valid as of March 2024.

Our Cabins Range

Our 1-bedroom Cabin Range is ideal for a holiday home, second dwelling, or farm staff housing. If you’re looking for tiny homes or small layouts, these designs offer everything you need with our fixed pricing, efficient prefab construction, and predictable build timelines.