Market study into residential building supplies

Find out about the Commerce Commission's study into competition for the supply and acquisition of New Zealand's residential building supplies.

Commerce Commission final report

On 6 December 2022, the Commerce Commission released the final report of its market study into the residential building supplies sector.

The Commission’s findings confirm 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 Government has welcomed the Commission’s findings and will be exploring the report’s recommendations, to understand what changes may be necessary to bring about better outcomes for the benefit of consumers. A Government response is expected in March 2023.

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

Read the press release: Government backs greater competition in building supplies(external link) — Beehive.govt.nz

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 consulted on the draft report for 4 weeks, closing on Thursday 1 September 2022.

Read the draft residential building supplies market study report [PDF, 416 MB](external link) — Commerce Commission

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

Background

On 21 November 2021, the Government accounced that it would require the Commerce Commission to carry out a study into competition for supply and acquisition of New Zealand's residential building supplies.

The study allowed 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 has undertaken an analysis of how competition is working in this sector and published its final report on 6 December 2022.

More information

Find out more about the residential building supplies market study:

Last updated: 08 December 2022