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The construction sector is known for its deficient productivity level compared to other sectors such as manufacturing. Lean approach, however, presents a promising option given its proven ability to improve the performance in other sectors. This study investigates the diffusion level of lean construction among the small to medium size enterprises (SMEs) by conducting a telephone survey in the Auckland region of New Zealand. The survey involved 100 enterprises active in the housing sector. The results indicated the rate of diffusion at three stages of a simplified innovation diffusion model including the knowledge exposure, decision analysis and implementation. The results are attributed to three main elements including the characteristics of SMEs as social units, the time required to attract adopters, and the level and type of communication must be used to reach the potential adopters. The study identified five main questions on the enablers and barriers of diffusion of lean construction to be addressed in future research.