New ways to build houses cheaper and quicker
The market is seeing a growing number of initiatives aimed at making home building projects more affordable, writes Miriam Bell.
Escalating construction costs have put costsavings front of mind for people building or renovating a home, but there are new processes on offer that aim to help.
CoreLogic’s latest Cordell Construction Cost Index shows the rate at which costs are rising accelerated again in the three months ending October.
The cost of building a standard 200m2 brick and tile house rose 3.4% nationally over the quarter, up on the 2.6% increase over the previous three months. It lifted the annual increase to 9.6% from 7.7% last quarter.
This is contributing to a decline in demand for new-build homes, and a pullback in demand for tradies for home renovation projects.
But a growing number of offerings aimed at making home building projects more affordable are hitting the market.
One initiative comes from design-and-build company Box. It recently launched Artis, an offshoot business with a focus on smaller houses and a simplified, more affordable design process.
Artis design lead Laura McLeod said consumer affordability issues and skyrocketing building costs were the driver behind the new business.
The business wanted to provide an option to the housing market which allowed for beautiful, modern design, but kept a close eye on the budget. Clever, efficient use of space and materials was one way to do that, she said.
‘‘We have taken the key learnings from the Box experience, and distilled it into crafting compact homes, typically 30m2 to 130m2, that are accessible to more people.
‘‘The streamlined process uses a series of ‘blocks’, which can be moved around to create a floorplan, and are finalised with a selection of interior and exterior fixtures and fittings.’’
Pre-considered design elements remove many of the hard decisions for people while keeping them involved in the fun ones, and saves time and money on design fees and the build itself, she says.
Price guides for homes range from $250,000 for a 45m2 studio to $600,000 for a three-bedroom, 110m2 home.
There may be additional sitework costs, and while building consents will be factored into the contract, resource consent costs are additional as they are sitespecific and often require specialist input.
But by building smaller and
‘‘New Zealand is becoming more international and diverse, and with that comes a natural cultural shift where people are more open-minded to different styles, and sizes, of living.’’
Laura McLeod
Artis design lead
‘‘Making use of highquality, prefab components is about making the building process cheaper and quicker at a time of economic uncertainty.’’
Baden Rawle
Napier businessman
working to standard details, the Artis build can take 10% to 50% less time than a typical architectural build of nine to 12 months, McLeod says.
‘‘There is a strong market for smaller builds, and we’ve had interest from clients adding minor units for their children, and everything from first-time buyers to couples downsizing.
‘‘New Zealand is becoming more international and diverse, and with that comes a natural cultural shift where people are more open-minded to different styles, and sizes, of living.’’
To date, two Artis homes, both city infill projects, have been built, and there is a further five on the drawing board, she says.
Increased use of prefabricated housing technology and products is another solution, after the government announced new regulations to support its prefab manufacturer scheme in June. It is expected to help make building faster and cheaper.
Napier businessman Baden Rawle says five years ago he became frustrated with the ‘‘excessive’’ costs involved in building a house, and it prompted him to find out about importing prefab homes and materials from China.
He has now obtained building consent to build steel-frame homes using prefab materials that meet the NZ Building Code, but which are imported from China. About 96% of the materials required can be imported, he says.
‘‘The cost of a build will be about $850/m2 plus GST, as opposed to around $3000 plus
GST for a traditional build. It is a big difference.
‘‘Alongside the materials, there are also cost-savings from the construction methodology which cuts down construction time. Instead of a 16-week build, it would take nine or 10 weeks.’’
This will help to cut the cost of the typical New Zealand build by about 30% minimum, he says.
‘‘The ridiculous costs involved with traditional builds here are making people look to alternatives, because they can’t afford them.
‘‘Making use of high-quality, prefab components is about making the building process cheaper and quicker at a time of economic uncertainty.’’
One house has been completed using Rawle’s imported materials, and another is under way, but he is currently working out how best to proceed with the initiative.
Cost-saving considerations are also influencing what renovators and builders of new homes want when it comes to technology to improve their homes, a new survey shows.
The survey of 153 people renovating or building a new home was carried out by research agency Perceptive for PDL by Schneider Electric, and it found 92% of respondents would invest more into technology to make their house more sustainable if it would save money long-term.
Three in 10 respondents say sustainability is one of the most important factors for them, due to a desire to reduce both longterm costs and their impact on the environment.
Solar power and smart home technology, including electrical timers, smart power outlets, and motion sensors for lighting and energy management and monitoring, were the most popular ‘‘would consider installing’’ features.
PDL residential electric design consultant Rob Knight says increased energy efficiency is the single biggest reason for installing smart home tech, with 21% of renovators picking it.