31/07/2026
Market value can fall. Rebuild Cost almost never does.
They're calculated from completely different inputs. Market Value tracks land, location and demand, and moves with the property cycle.
Rebuild Cost tracks labour, materials, fuel and site access, and according to Andy Thomson, after 30 years in construction, it has only ever trended upward with inflation.
That's why insuring a property for its purchase price is such a common trap. A $900,000 home today doesn't guarantee a $900,000 rebuild cost, and the gap between the two only grows over time.
Andy Thomson and Nick Sollitt from NZI break down the distinction, and why it matters most at claim time.
Watch the full podcast: https://www.costconsultants.co.nz/news-insights/podcast-episode-20-why-rebuild-value-isnt-market-value-a-discussion-with-nzi