Construction cost inflation - How does New Zealand measure up?

Residential and non-residential costs rose by more than 10% in 2021, and similar increases are forecast for 2022. Construction costs are rising at their fastest rate since the Global Financial Crisis.

Construction cost inflation reflects rising demand colliding with constrained supply. Infrastructure providers, property developers, and households are trying to build more than ever, but shortages of construction labour, material supply chain bottlenecks, and Covid-induced slowdowns have gotten in the way. Other countries are also facing similar issues, which raises the question: How do we stack up when it comes to cost inflation?