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 continues its recovery, the Reserve Bank has cut the official cash rate (as of August 2024) and 2024 looks to be 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 July 2024, the cost of building a new home fell by 1.1%. With New Zealand experiencing annual building cost inflation of 2.4% in 2023 (the slowest annual growth rate since 2016), previous indications that the pressure on the industry would ease appear to have come to fruition. 

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

As the annual growth rate continues its slow down and fewer building consent applications are submitted, pressure on builders and trades is subsided. 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 recently published Canstar data (July 2024), 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 July 2024 https://www.canstar.co.nz/home-loans/how-much-to-build-a-new-house-in-nz/

Building consent costs

The cost of building consents 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.

As of July 2024, there were 19,348 new dwelling consents in New Zealand, year-to-date, down from the previous period in 2023. However, along with the forecasted improving building industry, also came an increase in consents in July 2024 vs July 2023, as well as the largest volume of consents, by month, in 2024. As builders continue to catch up on previously approved dwellings from the 2022 construction boom, pressure on the industry is easing. 

Labour costs

As of January 2024, wages typically accounted for about 40% to 50% of the total cost of construction projects. However, according to the Cordell Building Indices, growth in average hourly wage rates for the construction industry has slowed sharply in recent months, and building materials costs have flattened out too.

Ways to reduce building costs

Whilst costs are reducing, there are further considerations you can take to reduce the overall cost of a building project, including:

• Working with a prefab home builder - offsite building projects tend to run quicker than traditional builds, reducing labour costs, avoiding weather-related delays, and clients tend to received a fixed-price quotation before the build commences.

• Use an existing plan - alterations to plans can incur additional design costs.

• Build a smaller home - 2 bedroom buildings can start at 45m² and 3 bedroom options as small as 86m² .

• 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: Genius Homes offers a full service, complete with all house design, planning, project management, and construction as one complete fixed-price package. 

Our base costs for our prefab homes are fixed and final. 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

Blog Article: The Pros and Cons of Prefab Homes

Prefab home loans

Prefab home loans are available through a number of lending institutions. If you would like to learn more about prefab home loans, we can connect you with a BNZ home loan specialist who can advise further.

Our prefab home prices

The total costs of a prefab home building project can vary depending on a multitude of factors. Our quotations cover the entirety of a building project, some of which factors include design, building, transportation, site works, interior works and more. 

For a detailed cost estimate, check out our range of home designs, choose your preferred option and we will send this out to you. 

Want to know more?

Our team is available to answer any questions you have, on any aspect of a prefab build, including design customisations, managing the consent process, building transportation, site works and landscaping. Get in touch via the form below.

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.