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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.

Sign up for news and insights or contact on LinkedIn, X @NickGoodall_CL or @KDavidson_CL and email ngoodall@cotality.com or kdavidson@cotality.com

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.

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The RBNZ keeps the OCR at 2.25%, but with inflation forecasts shifting to 4.2% for June, the wait and see period has a very clear focus on rising costs.

In this special reactionary episode, Nick Goodall and Kelvin Davidson break down today’s Reserve Bank (RBNZ) Monetary Policy Review. While the decision to hold the Official Cash Rate (OCR) at 2.25% was widely expected, the focus has shifted to the Bank's updated inflation outlook and the impact of the newly announced two-week ceasefire in Iran.

We discuss how the RBNZ is balancing the risk of a stuttering economy against the potential for rising wages and transport costs to keep inflation higher for longer. With the June quarter inflation forecast now sitting at 4.2%, we look at what this means for the timing of any future moves and the immediate outlook for mortgage holders.

This week, we discuss:

• The OCR decision: Why the 2.25% hold was the only move for today.
• Ready to move: The RBNZ’s signal that they won't hesitate to act if they see price increases becoming embedded.
• Revised inflation forecasts: Breaking down the shift from 2.7% to 4.2% for the June quarter.
• Interest rate strategy: Why the bottom for mortgage rates is likely behind us and what to consider when your fix comes up.
• The election year factor: Could the Government step in with fiscal support if the economy enters another recession?

Sign up for news and insights or contact on LinkedIn, X @NickGoodall_CL or @KDavidson_CL and email ngoodall@cotality.com or kdavidson@cotality.com

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.

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March data confirms a property market upturn was underway - but global second-round inflation risks may have just drawn a line in the sand.

In this episode, Nick Goodall and Kelvin Davidson break down the March Home Value Index, which saw a second consecutive 0.2% rise in national property values. While momentum was clearly building in Christchurch, Dunedin, and Invercargill through the first quarter, the escalating conflict in the Middle East has shifted the narrative toward cautionary gaps and a potential reversal of these gains.

We also preview tomorrow’s RBNZ Monetary Policy Review. With business and consumer confidence plummeting, will the Reserve Bank stay focused solely on sticky inflation, or will the growing risk of a real economy recession force a change in tone?

This week we discuss:

• The March HVI: Why Christchurch and Dunedin are outperforming Auckland and Wellington.
• Momentum vs. Volatility: Why March’s growth might be the last hurrah before geopolitical uncertainty takes hold.
• The RBNZ Preview: What to expect from the first policy review under a new Governor and the importance of uncertainty in their messaging.
• Labour Market Resilience: Why the rising unemployment rate is currently a story of labour force growth rather than mass job cuts.
• Construction Costs: A teaser for tomorrow's Q1 CCCI release and why the calm before the storm is ending.

Sign up for news and insights or contact on LinkedIn, X @NickGoodall_CL or @KDavidson_CL and email ngoodall@cotality.com or kdavidson@cotality.com

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.