Charity house auction paused due to rising costs

The rising cost of building materials has forced Otago Polytechnic to pause on its annual charity house auction after 18 years and more than $1.7 million given to local charities.

The charity house initiative was established by the polytechnic to give carpentry and electrical trades students an opportunity to build a fully functioning house with interior materials supplied by supportive local companies.

Each year, the house has been sold to the general public at auction, and any profit given to the Catalytic Foundation, which distributed the money to charities throughout Otago.

However, Otago Polytechnic industry training and innovation deputy executive director Mark Cartwright said the rising cost of materials had made the initiative "financially unsustainable".

Other polytechnics around the country offering similar initiatives stopped their projects some time ago, he said.

"Since Covid-19, our loyal suppliers have been unable to offer us the same level of discounts on building materials or significant gifted components.

"At the same time, we have faced a large increase in compliance costs."

He said houses had also become more difficult to sell because of the instability of the economy and the housing market, which meant Otago Polytechnic was no longer breaking even on the builds.

"It has meant there is no surplus profit which we can donate to charity."

Mr Cartwright said the decision to pause the annual project would not stop the polytechnic’s learning and practical hands-on collaborative opportunities for carpentry, electrical and He Toki trades students.

"Otago Polytechnic plans to continue building three houses each year on site at our Dunedin campus.

"These will be sold at cost to the community, and we will continue to actively work with community organisations we can support through this mahi."

He said the suppliers who had worked alongside the polytechnic on the charity house would continue to supply materials for the three on-site student-built houses.

The trades teams would also explore other opportunities for the polytechnic students to work on projects that benefited the community.

"Like our recent partnership with Otepoti-Dunedin Whānau Refuge which saw our He Toki ākonga building outdoor picnic tables for use at the organisation’s safe house."

He said the polytechnic would continue to review the situation with the annual charity house auction, and he believed it might be possible to restart the initiative down the track when the right economic conditions returned.

He hoped the 19th and final charity house auction, on November 15, would finish on a high.

john.lewis@odt.co.nz