The average cost of building a home in major centers has soared 21% over the past year, according to QV CostBuilder

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On average, the cost of each commercial rate for building materials has increased by almost 7% since the end of 2021.

KEVIN STENT / Stuff

On average, the cost of each commercial rate for building materials has increased by almost 7% since the end of 2021.

The average cost of building a house in New Zealand’s main centers has risen 21% over the past year, with further price rises expected, according to a cost database provider of construction.

The latest price update from Crown-owned QV CostBuilder in late April showed that over 60,000 rates were updated, resulting in a 21% increase in the cost of building a standard home of three bedrooms since the same period last year.

Since its last update at the end of 2021, the average cost of reinforcing steel has increased by 29%, ironwork by 18%, exterior work by 11% and piling and excavation costs by 11%.

The cost of stairs and railings has increased by 17% due to the increase in precast concrete and structural steel, he said.

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Substructure increased and site preparation increased by 10%, and framing, windows and exterior doors increased by 8%.

On average, each trade rate has risen nearly 7% since the end of 2021, he said.

QV CostBuilder spokesman Martin Bisset said rising construction costs should come as no surprise.

“But what is surprising is the magnitude of some of these increases, at a time when the construction industry is at about full capacity.”

“With inflation and interest rates also rising, and supply chain issues still present, there will be further price increases in the future,” Bisset said.

A Gib Board shortage in New Zealand led to stocks being sold on Trade Me at six times the retail price. There have also been reports of builders stockpiling Gib Board, theft of supplies from construction sites and fears have been expressed that the current shortage will drag down some construction companies.

The Commerce Commission is undertaking a market study of the building materials industry after raising concerns about a restricted choice of suppliers, some of whom could use “loyalty payments and rebates” to restrict competition for certain key products .

QV CostBuilder’s cost database across six regions including Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin is updated twice a year.

The last update represented an average 5% increase in the construction cost of non-residential buildings and a 6% increase in the construction cost of residential buildings since the last update.

The average construction price of a non-residential building has increased by 14% since April of last year.

“It is important to remember that these figures are averages for the six cities covered by CostBuilder and that the cost of construction will always depend on the level of finishes, interior layout and the presence of a single or double garage. “, said Bisset.

QV CostBuilder is a subscription-based construction cost platform and a subsidiary of the public company Quotable Value (QV).

It allows users to access data ranging from construction costs per square meter to indicative costs of over 10,500 other items, labor rates and more.

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