New research released on innovation in residential construction

A report by the New Zealand Institute of Economic Research (NZIER) on the impact of the demand for individually tailored (bespoke) houses on innovation in the residential construction sector was released today.

The study was commissioned by the Building Research Association of New Zealand (BRANZ) and the Building and Construction Productivity Partnership (Productivity Partnership), which is part of the Ministry of Business, Innovation and Employment. Both organisations take an active interest in how to improve the performance of our construction industry.

This new research by NZIER throws light on how we might increase innovation and productivity in residential building in New Zealand. It indicates that better project management and changing the way building regulations are set and applied provide the greatest opportunities for improvement.

NZIER found that innovation in residential construction here is focused on the use of new products that enhance building design but don’t necessarily improve sector productivity.

"The findings confirm New Zealanders’ love affair with bespoke houses that are designed to meet their individual needs," said Productivity Partnership Manager Chris Kane. "None of the buyers interviewed for the study built a house off standard plans.

"NZIER’s report shows that both builders and buyers are open to more standardised construction methods, but consumer demand for quality features such as designer kitchens will continue to drive demand for tailoring," he said. "Greater use of innovative building techniques, such as prefabrication, is one way residential builders can help meet the upswing in construction demand we are experiencing while providing quality, affordable housing."

See the NZIER report "Bespoke residential housing demand and construction innovation" at http://buildingvalue.co.nz/sites/default/files/Final-NZIER-Report-Bespoke-housing-and-innovation-in-residential-construction.pdf