Economic pressures have driven architectural studios to innovate and diversify, as outlined in BCI’s Construction Outlook Report – New Zealand. The report uses proprietary pipeline data, industry surveys and expert insights to forecast emerging trends and market resilience for the year ahead.

The report shows that architects are adapting by streamlining operations and embracing new technologies to stay competitive.

Cost escalation remains a major concern for New Zealand architects, with 59% identifying it as a key risk, while economic fluctuations (57%) and securing approvals (40%) remain top challenges.

Dan McNelis, New Zealand Studio Director at DKO Architecture, told BCI Central that the easing of inflation and steadying interest rates could provide improved project continuity and confidence.

“What I’m finding now is that we seem to have settled a little more politically. With things like the official cash rate drops and inflation seemingly under control, I’m seeing a lot more optimism from our clients,” McNelis said.

“We’re getting more incoming calls about projects, and personally, I’m feeling better about the work and the prospects for a really good year in 2025.”

Architects are determined to move beyond a survival mindset, focusing instead on thriving in the new year. This shift in perspective is echoed by McNelis, who emphasises the importance of fostering positivity and collaboration in the industry.

“As we enter a new year, I feel invigorated by the optimism of bouncing back from a challenging period. I want to shift from a ‘survive till 25’ mentality to one of thriving, focusing on building deeper relationships with clients and promoting quality outcomes,” McNelis said.

“Changing our thought patterns can significantly influence our outcomes. By embracing optimism, we attract positive results, creating a ripple effect in the industry.”

Faced with economic pressures, architects are turning to diversification and innovation. Many firms are exploring new project sectors, embracing advanced technologies, and prioritising talent development to maintain momentum.

“As a multi-disciplinary design firm, we view design efficiency and diversification as key to addressing economic challenges,” Nick Moyes, Principal at Jasmax, said.

“We’ve recently opened a studio in Sydney, which has shown promising growth across the Tasman Sea. We are optimistic that the efforts we make in the headwinds of today will accelerate opportunities now and into the future.”

New Zealand architects are also increasingly adopting specification writing software and automated workflows to enhance productivity. Over half (53%) of architects in New Zealand now use specification software—a figure significantly ahead of their Australian counterparts.

New Zealand architects are balancing resilience and sustainability with economic viability as climate change, severe weather and demand for sustainable design continue to challenge the built environment.

Clients are increasingly demanding climate-resilient projects, leading architects to incorporate innovative materials and practices. Still, this shift highlights a persistent challenge: the gap between market expectations and commercial realities.

Despite advancements, the nation’s approach to climate resilience is still evolving.”New Zealand’s approach to construction in the face of climate change and severe weather remains relatively fragile. Our architecture and built environment are constantly tested by these conditions, exposing limitations in our resilience,” Hamish Davies, Director of Plus Architecture, told BCI Central.

“Despite advancements and technical capabilities, we face significant disruptions and challenges that undermine our progress.” One area of opportunity is the Build-to-Rent (BTR) sector, which is gaining traction as a sustainable and community-focused solution to housing challenges. Interest in BTR initiatives rose to 38% from 10% in 2023, reflecting a shift toward rental-focused development.

Natasha Cockerell, Director and Registered Architect at Prendos New Zealand Limited, highlighted the sector’s potential. “There’s still incredible architecture being created, especially in the Build-to-Rent (BTR) sector, which I see as a significant part of our future,” Cockerell said. “Developers focused on long-term investments approach their projects with a mindset that prioritises quality and community, creating desirable living spaces rather than just profit-driven developments.”

As New Zealand architects enter 2025, a year where many architects are expecting a significant change in sentiment, a shared focus on resilience, sustainability and innovation is driving the profession forward. Centralised data, industry sentiment and advancements in technology are helping to streamline decision-making, making it easier to navigate challenges and adapt to New Zealand’s evolving built environment.

Want to learn more about the current state of the New Zealand construction industry?.

Download the full and free report  here.

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