WHY IT PAYS TO START NOW
If you’ve been thinking about extending your home in Wellington or Kāpiti, you’re not alone - many homeowners are debating whether now is the right time. The reality? Build costs have climbed steadily for five years, and every season of delay means paying more for the same project.
Here’s what’s happening with construction costs in 2025, why waiting could add tens of thousands to your project, and how NZ Proud helps homeowners stay on budget.
Build Cost Trends: 2020 to 2025
Independent research shows just how much average new build construction costs have risen in Wellington:
- 2020: $1,960 per m²
- 2021: $2,390 per m²
- 2022: $2,650 per m²
- 2023: $2,810 per m²
- 2024: $2,860 per m²
Even a modest 3% annual increase means a 100m² extension could cost $30,000+ more if you delay three years.
Why Build Costs Keep Rising
Several factors are pushing prices higher across the Wellington & Kāpiti regions:
- Labour shortages and rising trades rates
- Material price volatility and shipping pressures
- Site complexity in Wellington and Kāpiti (steep land, retaining walls, access)
- Council consent and engineering fees
- Last-minute design changes once construction begins
Because NZ Proud specialises locally, our team understands these regional quirks - from Wellington’s hilly suburbs to Kāpiti’s coastal climates - and plans proactively to reduce cost risk.
Why Waiting Costs More
Delaying might feel like the safe option, but in reality, costs rarely go backwards. Every year you wait:
- Per-m² costs rise with inflation
- Council and compliance fees increase
- Labour and materials get more expensive
- Your home remains less functional than it could be
Example: At 3% annual growth, a $350K extension today becomes ~$383K in three years - before adding any design changes.
How to Protect Your Budget
You can’t control the wider market, but you can control how you approach your project.
- Work with an experienced local builder who has managed hundreds of extensions. Our deep experience across Wellington and Kāpiti means we anticipate issues before they cost you money.
- Use budget trackers to stay on top of every cost (we provide these)
- Keep communication clear so you’re never left guessing
- Lock in design decisions before building starts - last-minute alterations are the fastest way to overspend.
See how we manage projects step-by-step on our Our Process page.
Why NZ Proud is Different
Because we’re a local team, we know the quirks of Wellington and Kāpiti homes - from steep hillside sites to weatherproofing coastal properties. Over hundreds of projects, we’ve developed a system that keeps budgets on track and stress low.
We provide clear estimates, use budget trackers to keep you on track, and maintain transparent communication throughout your project. That way, you’ll always know where things stand - no nasty surprises.
See why project management is crucial
Why Late 2025 Is the Time to Act
As 2025 winds down, it’s the ideal time to start planning your home extension. Here’s why:
- Lending interest volatility: While interest rates have eased slightly this year, economists remain divided on what 2026 will bring. Starting now allows you to secure finance while rates are still relatively stable.
- A busier residential market: Demand for renovations and extensions is picking up again across Wellington and Kāpiti. Getting in early means you’ll avoid the inevitable design and construction delays that come when the market heats up.
- The design process takes time: From concept drawings to council consents, the pre-build stage can take several months. Starting now positions you to be ready for construction by early 2026 - before the next wave of seasonal demand and potential cost increases.
Looking toward 2026 and beyond, forecasts suggest continued cost growth of 2–4 % annually (Cordell Construction Cost Index 2025). Acting now locks in value and builder availability before the next cycle.
Conclusion
Extension costs in Wellington and Kāpiti have risen over 44% in the last 4 years. Waiting means spending more for the same result.
At NZ Proud, we make the process clear and stress-free with detailed estimates, budget tracking, and local expertise you can trust.
Thinking about extending your home? Contact NZ Proud today for a local estimate and personalised advice.
