Kāinga Ora budgets retrofits at 7x build-cost inflation

The housing agency will spend $323m to upgrade older houses. (Image: Getty)

Fri, 12 Jan 2024

Housing agency Kāinga Ora will spend $323 million to renovate 820 homes this year, an average of $393,902 per home.That’s only marginally less than the cost of building a brand new 140 square metre home at today’s prices, Bank of New Zealand (BNZ) research shows.In 2023, the agency costed its retrofits at $251m across 747 of its older residences, or $336,011 per home, meaning it's banking on a construction inflation level of 17.2%.That’s more than seven times last year’s annual inflation of 2.4% for build costs,...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Primary Sector

a2 Milk execs sell over $6 million in shares

Chief executive David Bortolussi holds 1.52 million a2 Milk shares.

Graham Skellern 3:30pm

Technology

'Don't build': Govt centralises IT procurement

More off-the-shelf solutions are likely under a new centralisation of IT procurement.

Dileepa Fonseka 3:00pm

'Don't build': Govt centralises IT procurement

Finance

Heartland eyes nearly $400m non-strategic asset disposals

Heartland Group edges closer to its goal with Harmoney stake sale.

Andy Macdonald 2:53pm

Heartland eyes nearly $400m non-strategic asset disposals

Sponsored

AI agents: opportunity or graveyard? Spark’s five-point playbook for success

Artificial intelligence agents – autonomous digital entities that analyse data, automate decisions, and act independently – are set to drive a new wave of business transformation.

Spark Enterprise

Sponsored