Renovations beat the recession

Many homeowners in top suburbs are settling for million-dollar renovations instead of buying new houses in the economic downturn.

Statistics New Zealand figures this week show the value of building consents for houses and apartments slumped by 36 per cent from $6.1 billion to $3.9 billion in the year to May.

But the value of consents for additions and alterations has virtually held steady at just over $1 billion as home owners switch to new kitchens, bathrooms and extensions instead.

Certified Builders Association president Derek Baxter said the renovation boom was partly compensating for the collapse in new building work over the past two years.

"There's been a dramatic shift from new house construction to additions and alterations and a lot of change to smaller work that a couple of years ago you just couldn't get a builder to do."

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Posted: 4 Jul 2009

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