Investor Presentaiton
Auckland home construction
Strong population growth and low building in previous years has left Auckland with an under-build of around 33,000 homes.
Population growth in Auckland is expected to remain strong, with around 250,000 people expected to settle in the region over the
coming decade (equivalent to around 15% of the current population).
Auckland currently needs to build around 11,000 homes a year, and this number will rise over time as the population increases.
That implies a very high level of home building, which will need to be sustained for around a decade to keep up with population
growth and gradually eliminate the existing shortfall.
In 2016, just under 10,000 homes were consented. The latter part of 2016 saw consent issuance easing off. We expect this to be a
temporary slowdown associated with the introduction of a new regulatory framework for building (i.e. The Unitary Plan).
Housing shortfall
000
50
Stock shortfall
40
40
Home building
000
50
Westpac forecasts
50
Increase in housing demand due to
30
population growth
20
20
10
0
40
40
30
50
20
20
10
10
-10
-10
Mar-06
Mar-10
Mar-14
Mar-18
Mar-22
Source: Westpac Economics
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