Page 17 - HW June NEW 2022

“These are not normal times.” No surprises there. Steve Bohling gets the good oil on where they’re at from a range of builders and organisations.
THIS TIME LAST year, I asked a cross section of builders, “Consents remain high and intentions to build new homes solid – but are issues of supply adding to the Kiwi builder’s worries?”
The answer was: not if you’re organised.
But that was then and today, organisation alone won’t address the “perfect storm” of issues currently facing builders...
· Product supply
· Issues with product substitution
· Cost inflation
· Labour shortage
· BCAs as pinch points
· Rising interest rates
· Falling consumer confidence.
Gary Woodhouse is now CEO of group home builder Landmark Homes, but his comments are informed by 17 years’ worth of insights and experience from his time at PlaceMakers, Mico and Mitre 10 NZ before that.
“It’s a changed market today, to where it was 12 months ago – you can’t look at how it was to build houses 12-18 months ago and think that’s the way it’s going to be today, because it’s not,” says Gary.
In a nutshell: “It’s a challenging time right now, building houses.”
Another former merchant, Paul Bull, CEO at Signature Homes now for the last eight years, says that credit restrictions “have had an impact,” especially over January-February, with some people putting buying a house to the back of their minds.
Paul says he didn’t expect the effect of tightening credit to be quite as severe as it has been, but adds that March and so far May have been positive, either side of a traditionally quiet April.
Paul Bull also notes a key change to Signature’s product mix – including fewer first homes.
trade focus
Far from
“BUSINESS AS NORMAL”
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JUNE 2022 | NZHJ 15