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 may look at factors including:

  • The industry structure for key building supplies covered by this study
  • The nature of competition for these key building supplies, including any industry pricing practices or acquisition requirements that impact on competition
  • Impediments to the entry or expansion of new or innovative building supplies, such as ‘green’ building supplies or novel prefabricated products.

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

Further information

Find out more about the third market study:

Last updated: 21 November 2021