Data from subscription-based construction-cost platform QV CostBuilder suggests that residential construction costs in New Zealand have increased by approximately 61% since 2015, outpacing the 33% rise in the Consumer Price Index (CPI).
The result indicates that building-cost inflation has progressed at about 1.8 times the rate of general inflation over the last decade.
“Over the past decade, our data shows the cost of building a standard 175 m² home rose 61%, compared with a 33% rise in general consumer prices,” said QV CostBuilder Quantity Surveyor Martin Bisset.
“That’s a 28-percentage-point gap — building-cost inflation has been running well over one and a half times the pace of overall inflation.”
Bisset noted that although the past decade featured sharp increases, especially during 2021–2022 due to global supply chain disruptions and soaring material prices, recent years have been more stable.
“We’ve seen the cost of construction flatten out since 2023, with annual increases back down around 1% in 2025,” he said.
Certain materials have experienced increases well above the average. Cedar weatherboards saw the largest rise monitored by QV CostBuilder, climbing from $17 per metre in 2015 to a peak of $64 in 2022, then easing to $53 currently. Shadowclad exterior plywood has increased by 110%, windows by 72%, and steel sheet roofing by 76%.
Radiata pine clear flooring increased by 122%, carpet by 41%, ready-mix concrete by 43%, and Radiata pine framing by 45%.
Meanwhile, plywood experienced one of the smallest increases, rising only 12%. Construction labour costs also grew slightly more than the CPI, increasing by approximately 35%.
Non-residential buildings, excluding educational facilities, increased by 42% over the decade, which is less than the rise seen in residential construction.
“There’s no doubt the past decade has been one of the most extraordinary periods for New Zealand’s construction industry,” Bisset noted.
“QV CostBuilder’s consistent data has helped professionals benchmark costs and plan with greater confidence through some very challenging years.”
QV CostBuilder was introduced in 2015, offering reliable data to professionals in the construction industry, such as builders, quantity surveyors, valuers, architects, students, and councils. Thus, assisting with project pricing and planning.
The platform currently monitors over 61,000 rates and more than 18,000 material and installer prices across the country, with updates every month.