Retrofit and renovation trends

This Issue This is a part of the Retrofit and renovation feature

By - , Build 116

Alterations and additions are on an upward trend and should keep the building industry busy well into the future.

Figure 2: Work categories for alterations and additions consents for the year ending November 2009. Source: BRANZ.
Figure 1: Proportion of consents for residential alterations and additions (A&A). Source: BRANZ Study Report 214.
Figure 3: Number of houses (per decade) requiring maintenance. Source: BRANZ Study Report 214.

Retrofits and renovations are a steady source of work for the building industry. This work fluctuates with the economic cycle, but the changes are not as great as for new housing. Residential alterations and additions work is normally about 18% of all housing consents, but with new housing declining, this rate has climbed to about 25% of all consent work (see Figure 1).

Alterations and additions are a significant proportion of the workload for the industry, particularly when we include non-consented work such as renovations and maintenance. These are estimated to provide as great a volume of work as consented alterations and additions, bringing all alterations and additions to about 40% of the housing sector total.

Garages in top slot

So what types are work do alterations and additions include?

In the consented residential alterations and additions category, garages are way out in front with a 30.1% share (see Figure 2). Decks, bedrooms and bathrooms share a similar percentage (about 12%) of all consented alterations and additions jobs. The percentages add up to more than 100% because a consent may have more than one work type, and there are many other work types that have been omitted from the chart.

Figure 1: Proportion of consents for residential alterations and additions (A&A). Source: BRANZ Study Report 214.
Figure 2: Work categories for alterations and additions consents for the year ending November 2009. Source: BRANZ.

Major work on 30,000 houses a year

Looking ahead, the housing stock is ageing and large numbers of dwellings will require major renovations and repairs to extend their physical life. Much of the stock needs to be adapted for the amenities required by changing family types and lifestyles. At the same time as renovating, the house should be upgraded for energy efficiency and other sustainability aspects such as efficient water use.

Assuming a 50-year serviceable life for major items (such as roof cladding, windows, some linings and wall cladding), about 30,000 houses per year (300,000 per decade) now require major renovation (see Figure 3).

At present, the number of alterations and additions consents is about 26,000 per year (ignoring solid fuel heater consents, and work below $5,000 in value). A lot of these consents include additions, but it is probable most owners carry out maintenance needs on the existing structure at the same time. If so, the volume of consents is roughly in line with the calculated need. Some repairs will not require a consent, so it seems likely the stock is being upgraded as it should be.

Major maintenance will increase

The last BRANZ House Condition Survey (in 2005) showed that outstanding maintenance for an average house was about $3,700, down by about $1,200 from the survey 5 years earlier. The next survey, due early 2011, will update this figure and indicate if the renewal of the stock is continuing.

Major maintenance needs can often be over $100,000 per house so it is apparent alterations and additions work will increase as a proportion of total work into the future.

Figure 3: Number of houses (per decade) requiring maintenance. Source: BRANZ Study Report 214.

For more

BRANZ Study Report 214 Housing life cycle and sustainability is downloadable free of charge from the BRANZ Shop at www.branz.co.nz.

For updated data or more information on types of alterations and additions, contact Joe Fung at BRANZ, phone (04) 237 1170.

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More articles about these topics

Articles are correct at the time of publication but may have since become outdated.

Figure 2: Work categories for alterations and additions consents for the year ending November 2009. Source: BRANZ.
Figure 1: Proportion of consents for residential alterations and additions (A&A). Source: BRANZ Study Report 214.
Figure 3: Number of houses (per decade) requiring maintenance. Source: BRANZ Study Report 214.

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