The Ministry of Business, Innovation and Employment’s National Construction Pipeline Report forecast that, after dropping 5.7% to $42.6 billion in 2020, New Zealand’s construction sector was expected to grow steadily over the next four years to be worth $48.3 billion in 2024. In Otago, the sector was forecast to grow by 27% to $3.1billion, driven largely by expected increases in residential building activity. House builds were expected to increase in Otago by 12% to $1.6 billion in 2021. He expected building costs would increase by 6.5% a year largely driven by inflation and the increased cost of freight. "Demand for housing remains strong and will continue to play a lead role in the industry’s Covid-19 recovery, with residential construction forecast to keep growing for the next few years."

Source: Otago Daily Times December 08, 2021 03:32 UTC