Building Determination Processing Times Slashed, Boosting NZ Housing Supply

Minister Penk highlighted New Zealand's persistent housing shortage, emphasizing the importance of faster building approvals in addressing the issue.

The time it takes to process building determinations has improved dramatically over the last year, significantly reducing delays in the construction of new homes, according to Building and Construction Minister Chris Penk.

Minister Penk highlighted New Zealand's persistent housing shortage, emphasizing the importance of faster building approvals in addressing the issue.

“Making it easier and quicker for new homes to be built will not only mean more Kiwis can enjoy the benefits of a warm, dry home, but it will also grow the economy and create well-paying jobs,” he said.

The Role of Building Determinations

Building determinations play a critical role in resolving disputes between builders and councils regarding compliance with building regulations. These legally binding decisions are essential in supporting innovation within the construction industry, such as the adoption of new building products. They also provide clarity for builders, designers, and councils in complex cases.

Previously, the processing of these determinations faced significant delays. “In September 2023, applications had been waiting for an average of 500 days for a decision,” Minister Penk said. “These delays were immensely frustrating, creating uncertainty, lowering confidence, and adding costs—all of which hindered the construction of desperately needed homes.”

Significant Improvements Achieved

Over the past 12 months, a clearer focus on efficiency and prioritizing older cases has resulted in a dramatic reduction in processing times. “The average number of days has dropped by 80%, from 516 days in September 2023 to just 111 days in November 2024,” Minister Penk reported.

This improvement has occurred despite an increase in the number of applications received. While there is still work to be done to reduce processing times further, these gains mean that builders can get on with constructing homes faster, boosting housing supply.

Driving Efficiency and Targeting Complex Cases

The Ministry of Business, Innovation and Employment (MBIE) implemented several changes to achieve these results. “MBIE has introduced efficiencies in their processes and focused on resolving the oldest, often most complex cases, which involve multiple issues,” Minister Penk said.

A Brighter Outlook for the Sector

Minister Penk reiterated the government’s commitment to reducing delays across the construction sector, noting its central role in rebuilding the economy. “The building and construction sector is key to our economic recovery, and this Government is laser-focused on reducing delays across the board.”

Looking Ahead

With faster processing times, increased focus on innovation, and continued efforts to streamline processes, New Zealand’s construction industry is on track to address the housing shortage more effectively. Stakeholders in the sector remain optimistic that these changes will bolster confidence, reduce costs, and enable more Kiwis to access quality housing sooner.