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Property Market – Residential construction cost growth reaccelerates as building activity lifts

Source: Cotality

New Zealand residential construction costs recorded a further lift in the March quarter, with annual growth accelerating as signs of a recovery in the country’s building activity boost industry momentum.
The latest Cordell Construction Cost Index (CCCI) shows residential building costs increased by 1.0% in the three months to March. The quarterly result was slightly above the 0.9% rise in the three months to December and remains in line with the long-term average. (ref. https://www.cotality.com/nz/resources/downloads/cordell-construction-cost-index-ccci )
More notably, the annual pace of growth accelerated to 3.0% from 2.3% in the December quarter, marking the fastest increase in two-and-a-half years, albeit below the long-term average of 4%.
Cotality NZ Chief Property Economist Kelvin Davidson said the shift in the annual growth rate was a key signal the sector is moving into a more active phase.
“The quarterly figures have been relatively steady, but we’ve recorded a couple of modest increases and the acceleration in the annual rate shows cost growth is starting to find some upwards momentum again,” Mr Davidson said.
“That increase reflects a gradual pickup in activity, with more projects progressing, which has placed renewed pressure on parts of the construction cost base.”
He said the latest figures suggest the period of easing cost growth seen through much of 2024 and 2025 has shifted and is moving back into a growth phrase.
“We’re still well below the extremes experienced during the post-COVID period, but two consecutive quarters of growth indicates change is occurring and costs are edging higher again as the sector recovers.”
Dwelling approvals on the rise
Recent data on dwelling consents reinforces the improving outlook for construction activity, with the annual number of new dwellings approved increasing to a two-year high of around 37,000.
Mr Davidson said the rebound from the mid-2025 trough adds to the early signs of recovery seen late last year.
“We’ve moved beyond that period of flat or declining approvals, and the recent rise in consents would suggest there’s a more sustained recovery taking shape,” he said.
“Lower mortgage rates will have improved feasibility for some projects, while policy settings continue to support new builds relative to existing housing.”
He added that consents weren’t a guarantee of completed projects, but remain a forward-looking indicator of activity, with the full impact on costs unknown.
“There’s typically a lag before those approvals translate into work on site, but the momentum is moving in an upwards direction with builders becoming busier again, and that tends to coincide with an increase in cost pressures.”
Increases were recorded across a range of materials and finishes, including a 12% lift in the cost of masonry, 5% for wallpaper, 4% for LED lighting and declines in plumbing-related products such as PVC piping and bathroom fitouts.
“We’re not seeing widespread cost surges, but enough inputs are rising to push overall costs higher. That’s consistent with a market where demand is returning and capacity is starting to tighten again at the margins,” he said.
Cost pressures to challenge construction recovery
While the construction sector is expected to continue its recovery through 2026, supported by improving demand and a stronger pipeline of approved projects, Mr Davidson said the outlook is sensitive to both domestic and global factors.
He said a lift in migration and housing demand would likely support further building activity, with the potential for construction costs to trend higher.
“More activity in the construction sector is ultimately a good thing, but even relatively modest increases can impact borrowing requirements or project feasibility, particularly at a time of broader cost-of-living pressures,” he said.
Mr Davidson noted that build costs haven’t fallen in any meaningful way, meaning many households considering a new build or renovation are still working from a high starting point as conditions begin to firm up again.
He said global uncertainty, including the US-Israel-Iran conflict and higher fuel prices, is already beginning to filter into the supply chain, with some suppliers signalling potential price increases.
“Domestic conditions are improving, but global factors will also play a role. The US-Israel-Iran conflict and higher fuel prices are unknowns that could have an impact, particularly if they flow through to freight and material costs,” he said.
Mr Davidson said these dynamics align with what the Reserve Bank has described as first-round, indirect inflation effects, and will be closely monitored for any broader flow-on impacts.
“For the construction industry itself, this will be a challenging period as firms adjust to higher fuel prices just as activity is starting to recover,” he said.
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Save the Children – Ceasefire is a first step, but children in Lebanon still under fire

Source: Save the Children

Reports that the US and Iran have agreed to a two-week conditional ceasefire will be a welcome relief for families in the region, who have suffered five weeks of bombing, displacement and terror. However, a ceasefire is still urgently needed in Lebanon and the wider region.
In the hours since the ceasefire was agreed, Israeli military bombing has intensified in Lebanon to some of the worst levels since the conflict began.
This moment must be the start of a definitive ceasefire in Iran, Lebanon and across the wider region to protect children from further harm.
Ahmad Alhendawi, Save the Children's Middle East, North Africa and Eastern Europe Regional Director, said:
“There is no doubt that the news of a ceasefire agreement, however incomplete, is welcome; the alternatives being discussed were beyond abhorrent and the potential implications for children were appalling.
“However, this agreement is not enough. We’re urgently calling for a definitive ceasefire for the wider region, which includes Lebanon, to protect children from further harm. Lebanon is still being bombed, with Beirut shaken today by repeated blasts.
“The situation in Lebanon is reaching breaking point, with more than a fifth of the population forced from their homes. Many families have been displaced for the second time in two years, some have no choice but to sleep on the streets or collective shelters. More than 1,500 people in Lebanon have been killed, including more than 130 children and over 450 children injured. Children in Lebanon deserve the same safety as children anywhere in the world.
“The parties to the conflict and the international community must take every step possible to ensure a definitive ceasefire.
“Upholding the rules of war is an obligation, not a choice. Wars have laws and children must be off limits.
“A whole generation of children bears the brunt of this conflict. A definitive ceasefire for the entire regional conflict, including Lebanon, is the only way to truly protect children’s lives and futures and end the suffering.
“The violence must end before more children suffer irreparable harm.”
Save the Children is the world’s largest independent child rights organization, reaching tens of millions of children annually in over 100 countries through its work to save and improve children’s lives.
About Save the Children NZ:
Save the Children works in 120 countries across the world. The organisation responds to emergencies and works with children and their communities to ensure they survive, learn and are protected.
Save the Children NZ currently supports international programmes in Fiji, Cambodia, Bangladesh, Laos, Nepal, Vanuatu, Solomon Islands and Papua New Guinea. Areas of work include child protection, education and literacy, disaster risk reduction and climate adaptation, and alleviating child poverty.
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Household labour force survey estimated working-age population: March 2026 quarter – Stats NZ information release

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Save the Children deeply concerned for children and families in the Pacific as severe Tropical Cyclone Maila intensifies, the second cyclone to hit the region in days

Source: Save the Children

Communities across Solomon Islands and Papua New Guinea are currently facing the threat of Tropical Cyclone Maila, which has been upgraded to a category 5 system, while children and families in Fiji assess the damage left behind by Tropical Cyclone Vaianu. 
Save the Children staff across Solomon Islands and Papua New Guinea have been preparing for the arrival of TC Maila and are monitoring the tropical cyclone closely, ready to support children and their communities in affected areas, while staff in Fiji are working to understand the level of damage and needs as the immediate threat of TC Vaianu eases.
The Australian Bureau of Meteorology has warned that once TC Maila has hit Solomon Islands and Papua New Guinea, it may move across Queensland’s Cape York Peninsula sometime over the weekend. 
Save the Children Pacific Regional Director, Kim Koch said the current situation unfolding across three Pacific Island nations clearly demonstrates the disaster-prone nature of the region and reaffirms the need to ensure children and their communities are supported in responding to and recovering from multiple disasters.
“In Solomon Islands, we understand the impact of the cyclone has already been felt, with reports of families evacuating their homes and seeking shelter in evacuation centres in parts of Choiseul and Western Province with early reports of damage to buildings, schools and food gardens. 
“The impact of TC Maila is also being felt across the east of Papua New Guinea and Bougainville, with staff on the ground reporting strong gale winds, heavy flooding, severely damaged houses, food sources flooded, and washed-out roads. There are also reports of families evacuating their homes and seeking shelter on higher grounds. 
“While the immediate threat of TC Vaianu has eased, the impacts of the Tropical Cyclone on coastal communities in Fiji is starting to become clear, with the disaster bringing heavy rain, flash flooding and strong winds, potentially damaging key roads and buildings across the impacted regions in the country, many communities will face days if not weeks of recovery ahead.
“As three Pacific Island nations grapple with multiple cyclones simultaneously, children are invariably among the hardest hitand this crisis is no exception, with many having to leave everything behind, including their homes and belongings in search of shelter.
“The reported flooding, landslides and sustained rainfall across the affected countries are likely to cause widespread damage to critical infrastructure including schools, health clinics and homes, leaving children without access to education and urgent medical care. 
“Save the Children stands ready to work alongside communities and governments across the region to do everything we can to meet the urgent needs of children and their families as they face yet another devastating disaster.”
Climate induced disasters disproportionately impact children and young people, particularly as a result of disruption to education and psychosocial trauma associated with ongoing experiences of intensifying disasters. 
In October 2025, Save the Children released a new study warning that the climate crisis and its impacts, such as more frequent and intense cyclones, are making it significantly harder for families across the Pacific to access healthy food, worsening child malnutrition rates across the region.
Save the Children has a long history of responding to emergencies in the Pacific, ensuring we work alongside Pacific governments in the coordination of any response.
About Save the Children NZ:
Save the Children works in 120 countries across the world. The organisation responds to emergencies and works with children and their communities to ensure they survive, learn and are protected.
Save the Children NZ currently supports international programmes in Fiji, Cambodia, Bangladesh, Laos, Nepal, Vanuatu, Solomon Islands and Papua New Guinea. Areas of work include child protection, education and literacy, disaster risk reduction and climate adaptation, and alleviating child poverty.
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Storm News – Get ready for Cyclone Vaianu now – before it arrives – NEMA

Source: National Emergency Management Agency

More severe weather is moving towards Aotearoa New Zealand and people should take steps to get ready now, the National Emergency Management Agency (NEMA) says.
Tropical Cyclone Vaianu is currently lying northwest of Fiji, and MetService modelling shows it heading towards New Zealand on Friday and Saturday.
The cyclone is expected to bring heavy rain and extremely high winds, and MetService says red severe weather warnings may be issued.
“People should take time now to get ready before Cyclone Vaianu arrives,” John Price, NEMA’s Director of Civil Defence Emergency Management, says.
“Act now and not later – later may be too late!
“If you can, make sure drains around your property are clear of waste and debris and bring inside or tie down anything that strong winds could break or pick up.
“Stay up to date with the latest weather information from MetService and your local civil defence emergency management group.
“Trust your danger sense, and don’t wait for official warnings. Do not enter floodwaters, as they are dangerous and can kill you.”
John Price says in some areas, the ground is still saturated after recent heavy rain – and this means landslides are almost certain.
“Watch for warning signs like small slips or rockfalls, water flowing out of a slope, trees or fences that start to tilt or doors and window frames that start to stick. Also take care around trees which may become unstable and fall.
“This latest severe weather will be particularly tough for communities that are still in recovery mode. Remember to look after yourselves and each other, and reach out if you need support.
“MetService, ESNZ, NEMA, Civil Defence Emergency Management Groups and partner agencies are all closely monitoring Cyclone Vaianu and NEMA is coordinating government assistance as needed.”
Find advice about preparing for storms, flooding and other severe weather hazards in multiple languages and alternate formats at the Get Ready website: www.getready.govt.nz
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Climate News – A dry start to autumn for much of New Zealand

Source: Earth Sciences New Zealand

March was a mild and mostly settled month for Aotearoa New Zealand. However, the significant rain event in the upper North Island during the final week of the month led to states of emergency, mass evacuations, power outages, emergency rescues and widespread road closures from Northland to the Bay of Plenty. Several locations experienced near record March daily rainfall totals.
Further Highlights:
-The highest temperature was 30.9°C, observed at Alexandra on 7 March.
-The lowest temperature was -2.6°C, observed at Pūkaki Airport 3 March.
-The highest 1-day rainfall was 214 mm, recorded at Cathedral Cove on 26 March.
-The highest wind gust was 163 km/h, observed at South West Cape on 6 March.
-Of the six main centres, Tauranga and Auckland was the warmest, Auckland was the sunniest, Tauranga was the wettest, Dunedin was the driest, Christchurch was the coolest, and Wellington was the least sunny.
-The sunniest four regions in 2026 so far are Taranaki (802 hours), Tasman (774 hours), wider Nelson (769 hours), and Auckland (723 hours). 
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Fossil fuel crisis response opportunity to rebalance tax system for fairer, more sustainable future

Source: Tax Justice Aotearoa

8 April 2026, 2:30 pm – New Zealand's response to the fossil fuel crisis must provide immediate relief to communities and local businesses, and enable a recovery that is equitable and sustainable, building our resilience for future shocks. Some practical measures to rebalance our tax system would make a significant contribution to such a response, says Tax Justice Aotearoa (TJA), and the Better Taxes for a Better Future Campaign (Better Taxes).

“Despite the potential of a ceasefire, there are tough times ahead for many of us already struggling with the cost of living. We need an effective immediate response that provides meaningful support to those worst affected, including small businesses, those on low incomes, Māori, Pacific and rural communities,” says TJA and Better Taxes spokesperson Glenn Barclay.

“But this crisis also provides us with an opportunity to make a meaningful shift towards a low carbon economy, and energy sovereignty. It is also an opportunity to rebuild a more resilient and productive economy that rewards hard work and shares our wealth more fairly.”

“The Government seems to want to respond within its self-imposed fiscal limits, but it is likely to have to do more. There is an urgent need to grow government revenue to fund both the immediate response and the longer-term recovery,” says Glenn Barclay. “This must be done in a way that protects the least well off, while ensuring that those who can afford it, and those who benefit from it, contribute the most.”

TJA and Better Taxes are calling for the Government to immediately adopt the following measures:

  • Introduce a windfall tax, targeting industries, companies or sectors that make unusually high profits during the crisis. This should apply to fuel companies, but also other sectors that may make windfall profits, such as the banks, supermarkets and energy companies. Revenue gathered via this mechanism should be earmarked for the immediate costs of the crisis response.
  • Require fuel companies to report profit margins to ensure  the Government has sufficient information from fuel companies and other relevant sectors to monitor windfall profits. Information on the margins of each fuel company should be published on a regular basis (e.g. weekly) throughout the crisis.
  • A one off wealth tax. The crisis will hit those on low incomes much harder than the ultra wealthy. The Government should consider the one off application of a wealth tax on those who earn, or own assets, above a high threshold.
  • Target investment boost to green energy. The Government's investment boost should be amended immediately to target private investment in green energy infrastructure that will reduce our dependence on fossil fuels and make our economy more resilient (e.g. solar panels, company EVs).
  • Establish recovery corporate surcharges on sectors that are vulnerable to shocks, manage critical infrastructure and services, and/or lack competition (e.g. major banks, supermarket chains, electricity gentailers) to discourage excessive profits and generate revenue to build our resilience for future crises. 

TJA and Better Taxes do not support any temporary reduction of the fuel excise. It would do nothing to reduce demand for fuel and the financial advantage would flow to big corporations, and the ultra-wealthy, as much as the least well off. The measures outlined above focus on delivering relief to those least able to weather the crisis, while supporting a transition to a more equitable, resilient and productive economy.

“A windfall tax on fossil fuel companies and transparency around their profit margins will discourage price gouging, and generate the revenue we need to provide immediate support to struggling whānau and local small and medium businesses,” says Glenn Barclay. “Other tax reform measures proposed will both generate much needed revenue, and enable us to take advantage of this moment to start to rebalance our tax system to support a more sustainable, fairer future for everyone in Aotearoa.”

Tax reform is the primary focus of TJA and Better Taxes, but increased borrowing is also a legitimate way to fund crisis response, particularly when accompanied by the recommended tax measures. Further, borrowing for immediate and medium term investment to build green energy sovereignty and resilience to future shocks is appropriate; a failure to make sufficient investments would be reckless.

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University Research – Study reveals how women weigh health impacts of drinking – UoA

Source: University of Auckland – UoA

Midlife women focus more on alcohol’s immediate health impacts than longer-term risks, a new study shows.

Women manage the immediate health impacts of alcohol, but pay less attention to long-term risks such as cancer, according to new research out of Waipapa Taumata Rau, University of Auckland.

Dr Kate Kersey, a research fellow in the Centre for Addiction Research, interviewed 50 New Zealand women aged 35 to 60, both individually and in friendship groups, to explore how they understand and manage their drinking. See Psychology and Health: https://doi.org/10.1080/08870446.2026.2650785

Overall, 29 women (58 percent) drank at least twice a week, and 25 women (50 percent) typically drank three or more drinks on each occasion.

“There was a strong sense of expert knowledge in how participants talked about what alcohol does to the body,” says Kersey. “They spoke frequently about its negative effects on sleep quality, energy levels and weight.

“Interestingly, they did not talk much about long-term health effects such as heart disease or cancer. However, consistent with our other research, some participants said that if they were to develop cancer, they would feel deeply guilty, worrying that alcohol might have contributed.”

Kersey says these understandings reflect our current social context, where people are expected to take individual responsibility for successful lives and good health.

“If you are expected to be a ‘good’, productive citizen – you need to have the energy to perform well at work and stay fit and healthy.

The study also analysed women’s answers through a gendered lens. Today’s ‘empowered’ midlife women are expected to put effort into being a good mother and career women, into looking after themselves and others, and into ‘looking good’.

This was evident in how women in this study often framed drinking-related harms as something that could be managed through knowledge, careful monitoring and self-discipline – for example by tracking consumption through apps, investing in their health, and maintaining a slim body.

“They described doing a lot of exercise, with a strong sense that this was compensating for the effects of alcohol. However, we know that exercise does not always counteract alcohol’s harms, particularly its carcinogenic properties,” Kersey says.

The research focused primarily on middle-class Pākehā women, and Kersey notes that further work is needed with different communities and demographics.

Within this sample, however, most participants believed that they were ‘responsible’ about their drinking – a term Kersey sees as highly flexible and individualised.

“Everybody has a different idea of what being ‘responsible’ means when it comes to drinking,” she says. “For some people, that can still involve drinking quite large amounts – half a bottle of wine a night, or even a bottle.

“And if they are still doing their lives ‘right’ – working, parenting, exercising – they are less worried about their consumption.”

Kersey describes this as drinking within an ‘alcohol-genic environment’, where responsibility is placed on individuals to manage their drinking while alcohol remains widely available and heavily promoted.

“The industry pushes the framing of ‘drinking responsibly’, as does the government, because alcohol is a prized economic activity in our society.”

She argues that policy changes are needed like those that successfully reduced smoking-related harm: higher pricing, reduced availability, and strong regulation of marketing.

Kersey also emphasises the need for gender-responsive alcohol policy.

“One of the worst developments was alcohol being sold in supermarkets where the majority of shoppers are women, and where it’s seen like any other grocery item,” she says. “But alcohol is not a food product – it’s a psychoactive substance that can cause significant harm.”

Alcohol companies also increasingly target women through marketing that links drinking with health and self-care (relaxation, pleasure, social connection). Drinks labelled as low-sugar or low-carb also target women’s desire to maintain slim bodies.

Overall, the study shows that women’s drinking practices do not exist in a neutral environment.

“They are socially shaped, deeply gendered, and strongly influenced by powerful commercial interests,” Kersey says.

“If we want to reduce alcohol-related harm, we need to move beyond individual responsibility and address the wider systems that normalise New Zealand’s drinking culture.”

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University Research – Hope research will improve support for FASD – UoA

Source: University of Auckland – UoA

Fetal alcohol spectrum disorder is common, yet there is little support for carers, something a researcher at Waipapa Taumata Rau, University of Auckland hopes to improve.

Fetal alcohol spectrum disorder (FASD) is common in Aotearoa New Zealand, yet there is little support for individuals and whānau affected by it – something Waipapa Taumata Rau, University of Auckland is keen to change.

Dr Joanna Ting Wai Chu, a senior research fellow in social and community health, has received $1.4 million over three years to run a gold‑standard trial of a parenting intervention aimed at supporting caregivers and people with FASD.

“I am thrilled to receive the HRC Health Delivery funding for this trial because I feel a sense of social responsibility to carers who have been advocating for better support for many years now.”

The Ministry of Health estimates that three to five percent of the population may have been exposed to alcohol before birth, meaning it is likely that 1,800 to 3,000 babies are born each year with FASD.

For Chu, finding out more about the scale of the problem and what can help feels like a social responsibility. “We have such a huge alcohol‑drinking culture in New Zealand, but when you come into the space of foetal alcohol spectrum disorder, the amount of blame and the stigma attached is actually quite upsetting.”

According to data from the University of Auckland’s Growing Up in New Zealand study, around half of pregnancies are unplanned, Chu says.

“If you look at our drinking culture, and the fact we often don't find out we're pregnant until we're six or seven weeks or, even 12 weeks for some, by then you probably have drunk some alcohol.”

Yet, even though it is easy to accidentally drink during pregnancy, there is still shame and stigma associated with FASD, Chu says.

FASD is a lifelong disability that affects brain function and development, creating significant challenges for individuals, their families and society.

International research estimates that ten to 36 percent of people in youth-justice facilities have FASD.

Chu plans to co‑design a randomised controlled trial of a parenting intervention currently available only on an ad hoc basis, usually when a community organisation can fund it.

Chu developed the funding application with the FASD Care Action Network (FASD‑CAN), a nonprofit that supports caregivers impacted by FASD. They will now work together to design the trial to ensure it is bicultural, measures the most important outcomes and is delivered safely and respectfully.

“We want to make sure that the programme is going to work for the community, rather than us as researchers deciding everything. One of the issues with parenting programmes is they often works in the controlled setting, but when you roll them out into the community, the impact or the uptake is often not very high.

“And that's because often what we can control for in research doesn't necessarily mean it applies in the community.”

The aim is to ensure the programme meets community needs and, in the long run, for it to be funded by government as a key parenting programme to support carers.

“There is currently very little support available for parents and carers,” Chu says.

The hope is that parents and carers will learn about FASD, how it differs from other spectrum disorders and strategies to respond appropriately.

With better diagnosis and targeted support, Chu hopes carers will feel better equipped to support those living with this common disabling condition.

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Economy – OCR on hold at 2.25% – Reserve Bank

Source: Reserve Bank of New Zealand

8 April 2026 – The Monetary Policy Committee today agreed to hold the OCR at 2.25 percent. Since the February Monetary Policy Statement, events in the Middle East have materially altered the outlook and the balance of risks for inflation and economic growth in New Zealand. In the near term, inflation is expected to increase and the economic recovery to weaken. The Committee is vigilant to any generalised inflationary pressure and stands ready to act to return inflation to its medium-term target.  

The Middle East conflict has disrupted global supply chains, leading to significantly higher prices for oil and refined petroleum products. As a result, near-term inflation is increasing and economic growth is weakening in many countries. Global financial markets have been volatile and market interest rates have increased.

In New Zealand, the extent of the near-term increase in headline inflation will depend on how the conflict in the Middle East evolves and the magnitude and duration of the disruption to global supply chains and energy markets.

Medium-term inflationary pressure will depend on the extent to which higher costs influence price- and wage-setting behaviour by firms and workers in the economy. If medium-term inflation expectations increase, then inflation is likely to become more persistent. However, weak demand and spare productive capacity in the economy should constrain the degree to which higher costs can be passed on.

The current economic situation is different to 2022 when COVID-19 and Russia's invasion of Ukraine disrupted global supply chains and increased energy prices. Back then, demand was growing strongly, adding to inflation pressure.

The Committee's decision to hold the OCR balances the potential benefits of responding pre-emptively to the risk of higher medium-term inflation against the cost of unnecessarily stifling the economic recovery.

The Monetary Policy Committee is focused on ensuring that inflation returns to the 2-percent target midpoint over the medium term. This requires core inflation and wage growth to remain contained and medium- and long-term inflation expectations to remain around 2 percent. If these conditions are not met, decisive and timely increases in the OCR would be required.

Read the full statement and Record of meeting: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=922ab96a14&e=f3c68946f8