GLOPRAGlobal Property Radar

New Zealand building costs up 1.7% in September quarter 2026

Cotality's Cordell index rose 1.7% in the September quarter, the fastest quarterly rise since late 2022, lifting the annual pace to 4.8% from 3.5%.

The facts

  • The Cordell Construction Cost Index rose +1.7% in the September quarter 2026, which Cotality describes as the fastest quarterly increase since late 2022. The figures were published on 8 October 2026.
  • The previous three quarters rose by between 0.9% and 1.1%.
  • The annual rate reached 4.8% in the September quarter, up from 3.5% in the June quarter, against a long-term average of 4.0%.
  • Materials make up around 50% of the index and wages approximately 40%; the remaining 10% is other expenses, including consenting and professional fees.
  • The 12-month running total of consents for new dwellings has risen in recent months, from fewer than 34,000 to more than 40,000.
  • The index measures the cost of building a new home, not the price of existing housing stock. Cotality states that mortgage rates are rising.

What it means for your money

  • Building a new home costs 1.7% more than three months ago. The annual pace of 4.8% now runs above the 4.0% long-run average.
  • Financing is moving the same way. Cotality states that mortgage rates are rising.
  • Permits and professional fees are part of the bill. They sit in the remaining 10% of the index, after materials at around 50% and wages at approximately 40%.
  • For someone already holding New Zealand property, Cotality states that the values of existing properties remain relatively flat, while the cost of building rose 1.7% in the quarter.

What to watch

  • The index is quarterly, so the next reading covers the December quarter 2026.
  • The consents figure is a 12-month running total, not a 12-month change, and the release gives bounds of fewer than 34,000 and more than 40,000 rather than exact counts.
  • The release gives no price level for existing homes and no mortgage rate figure, only the direction, so neither can be read off this index.

Sources: Cotality New Zealand, Cordell Construction Cost Index, September quarter 2026, published 8 October 2026 https://www.cotality.com/nz/insights/articles/nz-home-building-costs-rise-at-fastest-pace-since-2022

Market data: New Zealand