New Zealand builders are feeling more confident about work pipelines, with one Tauranga builder noticing a sharp increase during the last three months.

Master Builders’ 2026 State of the Sector Survey found 68% of members reported a strong or steady pipeline, up from 64% last year.

The number describing their pipeline as diminished had nearly halved, from 11% to 6%.

Master Builders chief executive Ankit Sharma said the sector had adapted to tougher conditions rather than waiting for the market to rescue it.

“Conditions are still difficult, but our members are holding their ground.”

She said many Master Builders members had been through challenging economic cycles.

“They understand how to manage risk, respond early and keep their businesses focused through a challenging period.”

Sharma said work had not disappeared.

“Pipelines are holding up, and builders remain more confident about their own businesses than they are about the wider economy and construction market.

“No one is pretending everything is easy. Cost pressures remain challenging, customers are more cautious, and finance and consenting can still make projects harder to get across the line.”

Western Bay of Plenty houses. Photo / Kelly O'Hara

This was not a sector in collapse, Sharma said.

“It is a sector in transition – resilient, experienced and adapting to a changing market.”

Rising construction costs were the most widely reported pressure by 93% of survey respondents.

Eighty-seven % identified weaker consumer demand as an issue.

Sharma said a work pipeline was not automatically a viable project.

“Customers still need certainty around finance, cost and timing before they can commit.”

The survey also found more than 600 people recently built a new home or completed a major residential project with a Master Builder.

Of those, 91% would recommend building to others – up from 88% last year.

Seventy-five % experienced no significant delays, and 57% completed their project within or under budget.

“There never is the ‘perfect’ time to build. But these results show that home owners are having good experiences and that capable builders are ready to work with customers to turn their plans into reality,” Sharma said.

The survey found builders were still facing consenting delays. Sharma said a clearer consenting system would help builders deliver more efficiently and give homeowners greater certainty.

“The sector has weathered a difficult period, and its forward workload has held up. We now need to make it easier for viable projects to move from intention to delivery.”

Todd Grey, director and owner of Todd Grey Builders.

Todd Grey – owner and director of Todd Grey Builders and Master Builders executive committee member – said his work pipeline had increased during the last three months.

Grey said there was no specific reason. “I would have thought the upcoming election would have slowed people down.”

He said home owners could have more confidence with the economy settling.

However, “sometimes there’s no rhyme nor reason for when we get busy”.

Todd Grey Builders specialised in high-end architectural residential builds across Mount Maunganui.

He said construction costs were “ever-changing”.

“A lot of that is driven by petrol prices and everybody, the whole way through the system, is having to use petrol somewhere, whether or not it’s manufacturing right through to the milling of timber or using diesel.

“The way I see it is we’ve got to get smarter with how we’re building and trying to be as economical as we can and try to make it work for clients.”

Bijou Johnson is a multimedia journalist based in Bay of Plenty. A passionate writer and reader, she grew up in Tauranga and developed a love for journalism while exploring various disciplines at university. She holds a Bachelor of Arts in Classical Studies from Massey University.