Westpac New Zealand Economic and Sustainability Strategy Update
Construction and population growth
Annual dwelling consent issuance has risen to an all time high, with a strong
pipeline of work over the coming year. Much of this will be centred on Auckland,
but increases in activity have been widespread
Monthly residential building consents
4000
Number
Number
4000
In recent years population growth far outpaced home building, and an extended
period of rapid home building is needed to address the related shortages
3000
As the middle of the decade approaches, Westpac Economics expect that the
current period of very strong residential building will give way to a period of
more moderate activity
Migration and population growth are currently very low due to the
closure of the borders
While we expect migration will pick up following the rollout of vaccines
and the opening of the borders, the Government is planning to tighten
migration policy, focusing on skilled workers. As a result, net migration is
expected to remain well below the levels seen in recent years
3000
2000
1000
2000
Source: Stats NZ, Westpac
2005
2010
2015
2000
1000
0
2020
Population growth and net migration (rolling annual totals)
120
100
288120
Thousands
Net migration
Population growth
Thousands
120
Westpac Forecasts
100
80
60
40
20
0
-20
2010
0
-20
2012
2014
2016
2018
2020
2022
2024
Source: Stats NZ, Westpac
31View entire presentation