Auckland building consents have hit a 13-year high.
Official figures show close to 11,000 consents were granted in the country's biggest market last year, which is the highest since 2004.
Statistics New Zealand's construction statistics manager Melissa McKenzie said there was a solid pipeline of work last year.
"Over a third of all new homes in New Zealand were consented in the Auckland region last year, which is in line with Auckland's share of the New Zealand population," she said.
The result was helped by record numbers of retirement village units, and townhouses, flats, and other units in Auckland.
Westpac senior economist Satish Ranchhod said there was still a lot of work to do, and Auckland consents would grow gradually.
"Rising costs, as well as difficulties sourcing skilled labour and credit have provided a brake on activity," he said.
At a national level, building consents fell 9.6 percent in December, wiping out November's gain.
Other data out today showed immigration gains remained steady in December, with 5700 people coming here to live, or return home.
On an annual basis, the gain was 70,000.
A record 3.7 million people came to holiday in New Zealand last year, while a record number of Kiwis took a trip overseas.