The increase in construction costs in New Zealand, has dropped below long-term averages

The quarterly Cordell Construction Cost Index is a division of CoreLogic.

The latest has recorded a 0.5 percent increase in the first quarter of the year - less than half of the long-term quarterly average of 1.1 percent.

CoreLogic chief property economist Kelvin Davidson says supply chains have normalised and house-building activity has pulled back.

He says although it's not getting cheaper - it's not rising quickly either - and there's a bit more certainty to the market.