Market study into residential building supplies

On 21 November 2021, the Government announced that it would undertake a study into competition in New Zealand’s residential building supplies markets.

The study will allow the Commerce Commission to investigate any factors that may affect competition for the supply or acquisition of key building supplies used to build the major components of residential buildings.

This topic was chosen as the candidate of the study because of the importance of affordable housing to the wellbeing of New Zealanders. Residential building supplies are a significant component of residential housing and there are indications of potential competition concerns in the sector. Any improvements that can be achieved could have a significant impact for New Zealanders.

For the purposes of this study, the major components of residential buildings are those used in the foundation, flooring, roof, walls (structural and non-structural interior and exterior) and insulation. Residential buildings will include standalone houses to multi-unit dwellings.

The Commerce Commission is undertaking an analysis of how competition is working in this sector and will publish its final report by 6 December 2022.

Commerce Commission draft report

On 4 August 2022, the Commerce Commission released the draft report of its market study into residential building supplies markets.

The Commission’s draft findings indicate that competition for the supply of key building supplies is not working as well as it could, and that improving competition will contribute to more safe, durable, healthy and affordable homes for New Zealanders.

The Commission is consulting on the draft report for 4 weeks, closing on Thursday 1 September 2022. The Commission will publish its final report by 6 December 2022 and the Government will then consider what changes may be necessary to bring about better outcomes for consumers.

Read the draft residential building supplies market study report(external link) — Commerce Commission

Read the press release: Government determined to get a better deal for consumers(external link) — Beehive.govt.nz

Further information

Find out more about the third market study:

Last updated: 05 August 2022