Builders hold their ground as pipelines improve 

Forward workloads are proving resilient and homeowner confidence has strengthened, although construction costs, weaker demand and consenting delays continue to place pressure on residential builders – states the Master Builders 2026 State of the Sector survey

New Zealand’s residential building sector is showing signs of stability, with 68% of Master Builders reporting strong or steady forward pipelines in the 2026 State of the Sector survey.

That figure has increased from 64% in 2025, while the proportion of builders describing their pipeline as critically diminished has fallen from 11% to 6%. 

However, difficult trading conditions remain. Rising construction costs were identified as a pressure by 93% of respondents, while 87% pointed to weaker consumer demand. 

Sector adapting to difficult conditions

Master Builders CEO Ankit Sharma said the results reflected a sector adapting to a changing market rather than waiting for wider conditions to improve. 

“Conditions are still difficult but our members are holding their ground,” said Sharma. 

“Many Master Builders have been through economic cycles like this before. They understand how to manage risk, respond early and keep their businesses focused through a challenging period. 

“The important point is that the work has not disappeared. Pipelines are holding up and builders remain more confident about their own businesses than they are about the wider economy and construction market.” 

The results continue the cautious improvement recorded in the 2025 survey, when 63% of builders expected the wider economy to improve within 12 months and 62% expected their own businesses to be in better shape by the end of 2026. 

Last year, rising construction costs were also the sector’s most identified constraint, followed by access to finance, consenting and weak consumer demand. 

Sharma said having work in the pipeline did not necessarily mean every proposed project would proceed. 

“A pipeline does not automatically become a viable project. Customers still need certainty around finance, cost and timing before they can commit. 

“That is why confidence matters. Builders need customers who feel comfortable proceeding, and homeowners need confidence that they can get a quality project delivered.” 

Homeowners recommend building

The 2026 survey also gathered responses from more than 600 people who had recently built a new home or completed a major residential project with a Master Builder. 

Of those homeowners, 91% said they would recommend building to others – up from 88% from last year. Three-quarters experienced no significant delays, while 57% completed their project within or under budget. 

In 2025, 72% of surveyed homeowners reported no significant delays and around two-thirds described their overall building experience as positive. At the time, 37% said their project had gone over budget, most commonly because of scope or design changes, unclear initial estimates and product price increases. 

Sharma said the latest results should provide some reassurance to people considering a residential building project. 

“91% of recent homeowners would recommend building. That is a very strong endorsement, particularly after several years of difficult economic conditions. 

“For people who are ready to build, the message from those who have recently been through the process is encouraging. Most are getting through their projects without significant delays and the overwhelming majority would recommend the experience to someone else.” 

Communication remains an important part of that experience. The latest survey found 63% of homeowners turned to their builder for information, making builders their most-used source of guidance during the building process. 

Consenting remains a source of delays

Consenting continues to create uncertainty, with 68% of builders saying their projects had been affected by consenting delays. Among homeowners who experienced significant delays, consenting was the leading cause. 

The result follows similar findings in 2025, when 72% of builders reported experiencing stop-the-clock requests beyond the 20-working-day statutory processing period. One in four had received 10 or more requests for further information before securing a Code Compliance Certificate. 

Master Builders has called for a clearer and more proportionate consenting system to reduce unnecessary cost, delay and inconsistency. 

“The sector has weathered a difficult period and its forward workload has held up,” said Sharma. “We now need to make it easier for viable projects to move from intention to delivery.”