The volume of residential building work put in place fell a further 5.4 per cent in the September 2009 quarter, and is at its lowest level recorded in eight years according to Statistics New Zealand.

This slump in building activity will flow through to investors in the form of an under supply to the housing demand and see property prices increase in value as well as a possible increase in rents.

Regions with high net migration will see the most benefit of this potential housing shortage.