New Zealand’s construction sector moves into 2026 with a subdued pipeline and an industry operating with greater discipline as delivery capacity and feasibility shape the next cycle.
Findings from Hubexo’s Construction Outlook for 2026 draw on national project data from LeadManager, industry sentiment and insights from leaders across development, architecture and construction to provide New Zealand stakeholders with a data-driven view of what’s shifting across Aotearoa.
The annual report tracks activity across New Zealand; detailing what’s entering and exiting the pipeline, where delays are forming, and how momentum is evolving across residential, commercial & hospitality, community & public buildings, industrial, infrastructure & transport, and energy & resources.
The Pipeline
Early-stage activity remains subdued with new proposals consolidating in key regions. Demand is picking up in the commercial and hospitality sector as more projects enter concept and documentation, particularly in the Southern Region.
Abandonments spiked through 2025, and a broad swathe of sectors face a real risk of stalling as we move into 2026.
Commencements are forecast to trend upward between Q4 2025 and Q3 2026, led by residential work, which makes up nearly half (48%) of all starts for the period. Energy & resources provides a steady secondary pulse, while industrial, infrastructure & transport adds another layer of momentum as projects break ground.
Market Sentiment & Insights
Industry sentiment is cautious but steady, with stakeholders surveyed expecting a gradual uplift as planning cycles and government priorities clarify into 2026. Developer confidence is firming—44% expect more work and most are planning more than two years out—while builders remain focused on 6–12-month horizons as they manage risk and capacity.
Financial strain persists through inflation, material costs and consenting delays, but steadier supply chains and clearer cost signals are helping stakeholders plan with more confidence.
Across exclusive interviews with leading New Zealand built environment stakeholders, one theme is consistent: firms want technology and data that reduce risk, simplify delivery and improve visibility across the chain. Developers, builders and consultants emphasise digital tools that support coordination, compliance and performance amid labour constraints and complex asset requirements.
Hubexo Commentary
“Across New Zealand’s pipeline, stability is replacing volatility—but from a low base. Abandonment rates turned upward through 2025, and an early-2026 lift in commencements will ease back as the year progresses. The Southern Region is driving value, the Northern Region is driving commencements, and the industry is moving with a clear sense of caution heading into 2026.”
— Ashleigh Porter, President, APAC, Hubexo
“The tension shaping New Zealand right now isn’t demand—it’s capacity. The need for housing, infrastructure and essential upgrades is undeniable, but labour, capital and delivery bandwidth are the binding constraints. That’s why leading firms are tightening feasibility and leaning on technology to remove friction.”
— Ashleigh Porter, President, APAC, Hubexo