Quarterly housing construction costs rise at double the typical pace

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Dwelling consents running at record highs coupled with supply chain disruptions and a shortage of materials has resulted in a continued strength in construction cost rises.

The Cordell Construction Cost Index (CCCI), formerly the Cordell Housing Index Price (CHIP), reveals a national increase of 1.6% in the three months to September 2021 down from the 2.2% rise in the previous quarter, but still well above the typical quarterly increase of about 0.8%.

On an annual basis, Aotearoa’s construction cost growth rose from 4.5% in the 12 months to Q2 2021 to 5.5% in 12 months to Q3, the fastest annual rate since Q1 2018 (when growth was already into a slowdown phase). Cordell data shows that timber prices, particularly structural timber and cladding, have been a key contributor to overall cost increases. Metal costs and products have also been a factor in the increases.
 

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