The cost of building homes was up 4.6 per cent in the March year, the biggest increase in six years, with other building costs rising almost as much.
Statistics NZ figures on capital goods costs, released today, shows residential building price index was up 1.1 per cent in the March quarter. The non-residential price index was up 0.8 per cent.
For the year, the capital goods price index for residential building was up 4.6 per cent, while non-residential building costs were up 3.5 per cent.
Overall, the cost of buying new capital items rose 0.6 per cent in the March quarter, mainly driven by higher building costs. That was partly offset by lower transport equipment, with prices falling due to a high New Zealand dollar.
The Capital Goods Price Index measures the change in the purchase price of new capital goods used by producers.