A house being built.
Construction

Inflation sees the cost of construction rise

The housing shortage is far from over as the cost of building new homes goes through the roof.

Inflation has hit a 32-year high at 7.3 percent, but when you drill into the numbers, the construction sector is really feeling the pinch. 

The price of building a new dwelling is up 18 percent compared to this time last year. 

So how hard is this hitting the construction sector? CEO of Master Builders NZ Dave Kelly joined Lloyd Burr Live to explain.

"It's actually been up there for quite a few months now and it is really difficult for builders trying to price and manage their own costs," Kelly told Burr.

On the impact inflation and the cost of construction has had on the industry, Burr asked Kelly if it means people aren't planning big developments or if they aren't planning work at all.

"There's been a big drop off in enquiries for people looking at new builds.

"People are nervous."

There are companies in Australia that are going under because of the skyrocketing prices, Burr asked Kelly if companies in Aotearoa are going under.

"There is that risk and both builders and consumers need to think about a sensible and realistic contract and contract price."

Listen to the full interview between Dave Kelly and Lloyd Burr above.

You can also download the full interview on the Lloyd Burr Live podcast, and listen on the go. Check it out on the rova app or wherever you get your podcasts.