The 2006 - 2007 year was New Zealand’s worst year for migration-based population gain for six years.
New Zealand’s Net Migration Gains
2000 - 2007
| Year | Net Migration Gain |
| 2001 | +9,700 |
| 2002 | +38,200 |
| 2003 | +34,900 |
| 2004 | +15,100 |
| 2005 | +7,000 |
| 2006 | +14,600 |
| 2007 | +5,500 |
And, as New Zealand’s high interest rates show no immediate signs of easing, the house building industry is feeling the pinch.
Compared with a year ago, the value of house building consents in New Zealand is down 4.4%. In raw money terms, builders in December 2007 received $25 million less work in the pipeline than in the same month last year. According to numbers from Statistics New Zealand, this continues a trend of falling residential consents that began in June 2007.
Fortunately for construction workers, consents for industrial and commercial work are holding up nicely.
The building industry and many mortgage-paying households are hoping that falling building orders and cooling house prices will allow the Reserve Bank to ease back on its aggressive interest rate policy. The Reserve Bank’s official interest rate, at 8.25%, is already the highest in the developed world.
New Zealand’s Official Interest Rate 1999 - 2008
The Reserve Bank is tasked with holding the inflation rate at 1 – 3%. Inflation is currently 3.1%