The construction industry is preparing for a big year with new figures showing building consents increasing.
Consents for new houses were up nearly 5% in November, led by Canterbury which had its biggest monthly total in nearly six years.
But the spotlight is on the sector over its ability to handle the increase in work after the same figures from Statistics New Zealand showed a jump of 7% in prices per square metre.
Deutsche Bank economist Darren Gibbs said the increase in prices was well above the Reserve Bank's most recent forecasts of 4% - 5%.
Homes chief executive Richard Carver said pressure on raw materials to build new houses is most acute in Christchurch and Auckland.
