New Zealand Master Builders report resilient pipelines

New Zealand Master Builders says forward work pipelines among its members remain resilient, according to its latest sector survey. Recent homeowners also reported strong satisfaction with the building process.

The survey found 68% of Master Builders had a strong or steady pipeline, up from 64% a year earlier. The share describing their pipeline as critically diminished fell to 6% from 11%.

Ankit Sharma, chief executive officer of Master Builders, said the findings showed an industry adjusting to weaker trading conditions rather than waiting for the market to recover.

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

"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.

"No one is pretending everything is easy. Cost pressures remain challenging, customers are more cautious, and finance and consenting can still make projects harder to get across the line. But what we are seeing is not a sector in collapse; it is a sector in transition - resilient, experienced and adapting to a changing market."

Cost inflation remained the most commonly cited pressure, with 93% of respondents identifying rising construction costs as an issue. Weaker consumer demand followed closely, cited by 87% of builders.

Sharma drew a distinction between visible workload and projects ready to proceed, saying customers still needed confidence around finance, price and delivery schedules before committing to a build.

"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."

Homeowner sentiment

The survey also included responses from more than 600 people who recently built a new home or completed a major residential project with a Master Builder. Among them, 91% said they would recommend building to others, up from 88% in the previous survey.

Most respondents also said their projects progressed without major disruption. Three-quarters reported no significant delays, while 57% said their build was completed within or under budget.

Sharma said the homeowner responses should reassure people considering whether to proceed with a project in a subdued market.

"Ninety-one percent 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.

"There never is the 'perfect' time to build. But these results show that homeowners are having good experiences and that capable builders are ready to work with customers to turn their plans into reality."

Communication role

The findings also pointed to the builder's role as the main source of information during a residential project. Nearly two-thirds of homeowners, or 63%, said they turned to their builder for guidance through the process.

That central role means communication can shape how delays or changes are handled once work is under way. Poor communication can intensify uncertainty and frustration when problems arise.

"Builders aren't just there to deliver the home. For most customers, they are the person helping them understand the process, what is happening next and what decisions need to be made," Sharma said.

"That brings real responsibility. When something changes or a problem arises, good communication can be the difference between an issue being managed well and a customer losing confidence. Clear, regular conversations about cost, timing, changes and expectations are fundamental to a successful build."

Consenting delays

Consenting remained a persistent obstacle for both builders and homeowners. The survey found 68% of builders said their projects had been affected by consenting delays, and homeowners who faced significant delays most often identified consenting as the main reason.

The issue matters because delays in approvals can affect start dates, financing arrangements and final project costs. In a market where consumer caution remains high, those uncertainties can make it harder for projects to move ahead even when demand exists.

Sharma said the current system should maintain standards without adding unnecessary cost or inconsistency.

"We support high standards, but achieving those standards should not require unnecessary cost, delay or inconsistency," Sharma said.

"A clearer and more proportionate consenting system would help builders deliver more efficiently and give homeowners greater certainty about when their project will start, what it will cost and when they can move in.

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

"And for New Zealanders thinking seriously about building, the experience of recent homeowners should give them confidence to have that conversation with a Master Builder."