This estimate, however, assumes no growth in home building in the rest of the country. Pressures on the construction industry will also increase with New Zealand’s infrastructure needs and repairs on the remaining 42,000 leaky buildings nationwide.
(iv)  Growth in private consumption  Real private consumption has been growing at an annual rate of around 3.5 percent in 2013 as a result of many factors: the high terms of trade, the 40,000 person increase in employment, the 20,000 person increase in permanent and long-term immigration, the 9.5 percent increase in house prices, strong consumer confidence and low real interest rates.