Although a record number of new home approvals were issued last year, construction could be delayed due to a shortage of workers and materials, construction workers say.
A construction site in Manukau, South Auckland.
Photo: RNZ / Liu Chen
There were 48,522 new homes approved in the year through November 2021.
The CEO of the Building Industry Association, Julian Lees, said the industry wouldn’t be able to build them all.
“It’s great on one level to have a record number of approvals for new homes, which we need, but we have to accept the fact that we don’t have enough builders or actually the materials.”
In times without Covid-19 or other disruptions, Leys said, New Zealand built just 40,000 homes a year.
Some construction companies were locked up for the next 12 to 24 months and there was a shortage of skilled workers, such as carpenters, quantity surveyors and truck drivers, due to border restrictions.
Lis said the past 18 to 24 months have been a “perfect storm” during which builders have also been waiting longer to get their hands on timber, wood frames and other materials.
“The industry is going through a boom. The unfortunate reality is that builders are having to put the work out, and the people who have had some of these approvals will either have to wait a very long time if they are lucky, or in some cases unfortunately the houses are not built.”
Leys said many builders were planning ahead and placing orders for materials much earlier than before, although some were struggling with cash flow.
He said the government should allow more skilled workers to enter across the border.
“The challenge we face in 2022 may be more important than the challenges we faced last year, and I think 2022 will be about shortages and a lack of skilled people rather than a lack of building materials.”
Many of the approvals are for high-density housing, said Wen Zeng, director of the Auckland-based construction division.
“What it means for us is that there is more work than in the past few years where builders have been building bigger homes and now we’re building smaller homes.”
This requires more resources, skilled workers and materials, he said.
Zeng said that although the problems are the same as many countries face amid the COVID-19 pandemic, there are things authorities can do to help.
“Local council authorities can consider more alternatives and flexibility around material supplies, and re-engineer and reconsider existing building code to help builders.”
Nelson-based builder Richard Merrifield agreed that the industry faced challenges and said authorities should encourage innovation.
“Do we continue to build homes the same way we’ve been doing for years or are we looking at more innovative ideas? There are some very bright young people around the industry who are going to think outside the square, and come up with solutions to these problems.”
Construction Minister Botto Williams has predicted that high levels of residential construction will continue for some time.
She said the government will continue to work with the sector to help reduce the disruption caused by Covid-19.
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