Economists are surprised with the strong bounce back of building consents for new homes.
According to Stats NZ, the number of building consents for new homes across the country hit a 13-year high in November last year.
Figures show 3,262 new homes gained consents in that month.
Statistics New Zealand says that is being boosted by Auckland reaching the second-highest number of new home consents on record.
Construction statistics manager Melissa McKenzie said the growing popularity of townhouses, flats and apartments are also driving numbers up.
"It might suggest that we are at certain density levels and trying to go up rather than out. Or it could suggest that people's preferences have changed."
ASB senior economist Jane Turner said they expected consents might have remained weaker in the short term.
"Largely as a result of the change in government and the new policies coming in, for developers there's likely to be a bit of uncertainty around Kiwibuild and how that is going to affect them."
Turner said there's still underlying demand in Auckland.
"We expect construction at Auckland to remain at very high levels, we do think there is very limited scope for future growth just because Auckland is hitting quite a few capacity constraints."