As we settle into 2023, with rising inflation it's not unexpected that many people are hesitant to start building.
But for those who have the capital or funds already secured, you might be surprised to hear that there couldn't be a better or cheaper time than right now to start building your dream home!
In this article, we spoke to Landmark Homes CEO Gary Woodhouse about how you can use the present-day lull in the design and construction industry to your advantage.
One of the most pressing worries we hear from our Landmark customers is they are concerned about the rising cost associated with building a new home. While rising inflation and increasing prices across the board cannot be denied, the facts are no one in the New Zealand or global economy has been immune to these pressures.
When it comes to building a new home, inflation has risen steadily since 2014. CoreLogic NZ's Cordell Construction Cost Index (CCCI) report notes that in 2022 the acceleration of new home builds coupled with New Zealand's ongoing labour shortage, building material supply issues and project delays have all contributed to the 10.4% increase in the cost of building a residential home.
From August 2021 to January 2022, there was a 19% increase in the cost of building materials to suppliers, with one of the biggest influences on construction-related building costs being driven heavily by the cost of timber.
When building a new home, people may not realise that many building materials or components are sourced offshore. This is felt in the materials themselves and the increased shipping costs. Unfortunately, the rest of the world is also struggling with the impact of inflation and economic uncertainty, which has a flow-on effect on the cost of building materials in New Zealand.
And while this may sound bad for building, the opposite is true.
We would love to say that as the post-pandemic ship continues to steady, building costs and the price of materials will start to come down, but as MBIE's Building and construction sector trends show, prices are only set to increase, so if you are looking to build a new home, there isn't going to be a better or cheaper time than right now.
When building a Landmark Home, the only limitations are your imagination. Luckily, having the foresight to build the home of our customer's dreams is all part of the Landmark promise.
A clever design and build or custom build is the most cost-effective solution to building your own home. Not only does it give you the option of creating a bespoke home of your dreams that meets your wants and needs, but it means you only pay for the things you want and nothing you don't.
While we are not out of the woods yet, all signs point to the fact that with more supplies, construction workers, and less demand, now is the best time to take advantage of the skilled builders, designers and council resources before the housing market ramps up again.
With 45 years of experience building people's dream homes, Landmark has been at the coalface of its fair share of building cycles, whether up or down, and one thing we know for sure is that New Zealand is robust at recovering from these dips.
Released in February 2023, Westpac's Economic Bulletin focusing on Residential Building in New Zealand noted that many of the significant issues faced by people building their own homes come from inefficiency, weak production in projects that run over budget, are delayed or need rework due to "deficient building quality."
The bulletin explains that while fewer building companies may survive these turbulent times, a section of the industry like Landmark will stand the test of time because of their focus on customer experience and exceptional quality and craftsmanship.
At Landmark Homes, our customers are at the heart of our business. We pride ourselves on making the journey to designing and building remarkable homes as easy and cost-effective as possible.
That's why we know there is no time like the present to build a quality home you will be proud to call your own!
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