The Master Builders Federation says it will start to get very nervous if a downturn in the construction industry continues.
Statistics New Zealand says the number of applications for building consents in June was the lowest in seven years and building of houses has dropped to 1986 levels.
The number of new dwellings fell by about 20% last month, following a 40% drop in May.
The federation says the industry can cope with a few months of that level of downturn, but some companies won't survive if it carries on.
But because builders need work, it says there's never been a better time to get renovations done or houses built.