The importance of building and housing
Introduction
All New Zealanders are involved in housing and buildings as consumers, users or investors. Access to and the quality of our housing, the buildings we use and the built environment affect all other aspects of our lives. Shelter is recognised internationally as a basic human right.1
Social
Our homes influence our wellbeing, our sense of worth and our ties to our families, communities and work. A stable home environment allows for the development of community links and networks, stable schooling and connection with local health professionals. This can result in improved educational and health outcomes for children. Likewise, well-built buildings will provide: workplaces that are safe, healthy and support workplace productivity; and spaces for recreation and business that serve the needs of the community in a safe and effective manner.
Economic
The building and housing sector is a significant contributor to New Zealand's economy.
Activity in the construction sector is strong. During 2004 we estimate that there was nearly $10 billion of capital investment in residential building, and approximately another $4 billion in non-residential building.
The construction industry's share of total production (GDP) was 4.5 percent in the March 2004 year. Growth in the building sector has been higher than the rest of the New Zealand economy over the past three March years, increasing on average by over 10 percent per annum over this period.
Ninety percent of New Zealanders' household wealth is held in housing. Total housing wealth exceeded $300 billion at the start of 2004.2 The 2001 Census indicated that private people held approximately 230,000 out of the total 360,000 rental properties in New Zealand.
Environmental
The new Building Act requires consideration to be given to sustainable development and improving energy efficiency in housing and buildings.
Global
Globalisation impacts on the building sector in a similar way to many other sectors. New technology, building systems and products, building standards and design are increasingly international. New Zealand can benefit from the increased efficiencies and opportunities of the global market, balancing an approach that is responsive to innovation and change in technology with one that ensures products are appropriate and are used appropriately in the New Zealand context.
Labour market
At the end of 2004 the building and construction sector employed 7.6 percent of the total employed workforce (156,600 people).3 In addition, tens of thousands of people are employed indirectly, supporting the industry in manufacturing, material supplies and transport.
Population and demographic change
Strong population growth from net migration inflows has influenced trends in the residential housing sector over the past several years, leading to a significantly increased demand for housing. Continued positive inflow is expected to be maintained, although the rate is expected to drop in 2005.
Nearly a third of New Zealand's population lives in the Auckland region. Auckland currently accounts for approximately 40 percent of New Zealand's residential dwelling construction activity, based on the number of consents issued for new dwelling units.4 The Auckland region will continue to be an area of focus for building and housing development and infrastructure investmentin the foreseeable future.