Official advice shows KiwiBuild will prevent this decline in house building and drive further increases, Minister of Housing and Urban Development Phil Twyford says.
Twyford said the national construction pipeline report 2017 to the previous government showed new house construction peaking at 34,500 in 2019 – this would have been well below previous records and short of what is needed to meet population growth.
“Advice from the Ministry for Business, Innovation, and Employment is that KiwiBuild will increase construction of new homes, not replace home building that would have happened anyway,” Twyford said. “Under the MBIE modelling, the number of houses will continue to rise with the Labour-led government, rather than fall as they would have under the previous government.”
He said KiwiBuild will get more Kiwi families into affordable homes and will help prevent a decline in output from the building sector.
“To lift home building to the record levels last seen under Labour in the 1970s, the government will work alongside the industry to boost capacity,” Twyford said.
KiwiBuild to deliver affordable housing
Record apartment supply due for completion
The previous government was told by officials that the number of houses built would peak and start to fall well short of the number needed to meet demand.