New Law to Add 250,000 Building Products, Lower Costs for NZ Builders

Builders and designers in New Zealand have long voiced frustration over limited product availability and unnecessary red tape when sourcing alternative materials.

New legislation passed by the Government is expected to revolutionise New Zealand’s construction sector by making it easier and more affordable to build homes and commercial properties. The move, championed by Building and Construction Minister Chris Penk, will clear the way for up to 250,000 new building products to enter the local market as early as this year.

This significant reform, a key component of the Government’s broader Going for Growth strategy, aims to combat rising construction costs by increasing competition and reducing material shortages. According to Penk, construction costs have ballooned by 40 percent since 2019, largely due to limited product options and heavy reliance on a few dominant suppliers.

“The status quo is unacceptable,” said Minister Penk. “Making it easier and more affordable to build in New Zealand is a central pillar in this Government’s Going for Growth plan to get the economy back on track.”

Opening the Market to More Choices

The cornerstone of the new legislation lies in the amendment of the Building Act to reduce barriers for importing and using high-quality overseas products. Builders and designers in New Zealand have long voiced frustration over limited product availability and unnecessary red tape when sourcing alternative materials.

From July, the Government expects more than 12,000 essential building products — such as plasterboard, cladding, roofing, and insulation — to become instantly usable through a newly created Building Product Specifications (BPS) pathway. This pathway allows Building Consent Authorities to accept overseas products that meet cited international standards, provided they are used as intended in construction projects.

“This change ensures that builders and architects are no longer stuck with a narrow range of expensive materials,” Penk explained. “It opens the door to better deals and faster project timelines, similar to what’s already happening in countries like Australia.”

Benefits Beyond the Building Site

The influx of new products is also expected to improve supply chain resilience. During the COVID-19 pandemic and subsequent global supply disruptions, New Zealand's construction industry was severely hampered by delays and shortages. This reform gives builders more flexibility and options during such crunches, helping avoid costly project hold-ups.

The move isn’t just a win for construction professionals — local manufacturers also stand to benefit. The new system will allow New Zealand-based producers to benchmark their products against globally recognised standards. This opens doors for domestic companies looking to export their goods to larger international markets, enhancing their global competitiveness.

Quality Assurance Through Regulation

To ensure only high-quality and safe products enter the New Zealand market, the Government is also working on establishing robust regulations to support the new import and approval process. This includes targeted consultation with industry stakeholders, local councils, and product testing authorities.

“Only products that meet strict performance standards will be approved,” said Penk. “We’re setting up a smart system that balances speed with safety, and innovation with integrity.”

Industry Reaction and Future Outlook

Initial feedback from the building and construction industry has been overwhelmingly positive. Industry leaders have welcomed the reduction in red tape and the increased flexibility it brings to builders and designers.

“Builders have been asking for this for years,” said a spokesperson from the New Zealand Construction Industry Council. “We’re excited to finally have access to a broader catalogue of proven products, which should also make it easier to plan and cost projects.”

With implementation beginning mid-2025, the legislation marks a major step toward a more competitive, resilient, and innovative building sector in New Zealand. As housing affordability and infrastructure remain pressing national concerns, this policy signals the Government's commitment to practical solutions that empower both industry professionals and everyday Kiwis.

Key Benefits of the Legislation:

• Up to 250,000 new products expected in the market in 2025

• 12,000+ essential building products approved for use starting July

• Lower construction costs due to increased competition

• Faster approvals for compliant international products

• Greater resilience in times of supply chain disruption

• New export opportunities for local manufacturers

• Strong quality assurance via updated regulatory framework

As the sector prepares for this transformative change, all eyes will be on how these new pathways streamline projects, support builders, and ultimately help more New Zealanders build or renovate homes that fit their budget.