CCCI Q1 results: the calm before the transport-cost storm?

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This week, Nick Goodall and Kelvin Davidson break down the Q1 2026 Cordell Construction Cost Index (CCCI). While cost growth remains relatively controlled at 1% for the quarter, building costs are now 30% higher than they were in March 2020. 

We discuss why this controlled growth might be short-lived as global supply chain disruptions and transport cost hikes begin to flow through the industry.

We also analyse the latest RBNZ mortgage lending data, which reveals a massive shift in borrower behaviour. As the market prices in potential OCR hikes, New Zealanders are rapidly moving away from floating and short-term fixes in favour of two and three-year terms.

This week, we discuss:

• CCCI results: Cost growth accelerated slightly to 1% in Q1 (3% annually), but remains below the long-term average of 4%.
• The level vs growth gap: Why build costs feel expensive despite lower inflation rates - levels are now 30% higher than pre- oandemic. 
• Construction industry health: Dwelling consents have risen to an annual total of ~37,500, signalling a robust recovery despite regional differences.
• Mortgage lending trends: 55% of new lending is now fixed for longer than 12 months, with the two-year rate becoming the most popular choice at 31%.
• The OCR outlook: Why the market expects the RBNZ to act sooner than previously thought to combat "second round" inflation risks.

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This podcast is for educational and entertainment purposes only and does not constitute financial, legal, or tax advice. The hosts are not licensed Financial Advice Providers in New Zealand. All information is of a general nature and does not take into account your personal situation or goals. Please consult a qualified professional before making any financial decisions.