The number of houses consented across the country was up 10% in the past 12 months and for the first time in 11 years surpassed 30,000 new homes built.
However, analysts are highlighting a trend showing a slowing in construction, specifically in Auckland and Canterbury, which is raising concerns, and the continuing shortage of apprentices.
Around Otago, consenting for October, compared with a year ago, rose 18% to 161 dwellings while the value rose 16.6% to $63million.
ASB senior economist Jane Turner said construction was the key driver of the economic growth and ''slowing momentum in consent growth is of some concern''.
Residential building consents appear to be slowing, led by declines in Canterbury and a flattening in Auckland.
''The flattening trend in Auckland residential consent issuance is disappointing, in light of ongoing shortages and continued strong population growth,'' Mrs Turner said.
However, further compounding the housing issue is the construction sector, which is struggling to produce the skills needed to meet demand.
Building and Construction Industry Training Organisation chief executive Warwick Quinn said the organisation had a record number of apprentices in training and recently passed the 10,000 number for the first time, but more were needed.
''Most of our growth comes from those firms that traditionally have apprentices, so we want to increase the number of employers who train,'' he said.
Mr Quinn noted the 30,000 annual building consents ''needs to be the new norm'', as it was coming off a low base.
Mrs Turner said it was possible ongoing uncertainty for developers due to legal challenges to Auckland's unitary plan could be holding back applications for new builds.
''In addition, many developers are citing rising construction costs in Auckland as eroding margins and developer profitability on new builds,'' she said.
She described Canterbury's consent issuance as having ''resumed its gentle downtrend'' as the earthquake rebuild activity winds down from its peak.
However, she expects strong nationwide population growth to provide some support to Canterbury housing demand, with any slowing in house building activity likely to remain gradual.
Westpac senior economist Satish Ranchhod said the 2.6% rise in consent numbers for October followed signs of slowing growth in the months previous, but for the year was up a ''solid'' 10%.
However, he noted there were 9950 new homes consented during the past year in Auckland, and building work was failing to keep up with population growth.
Statistics New Zealand noted while the total for the year was beyond 30,000, it was 10,000 fewer than the high of 40,000 reached early in 1974, and also 3000 fewer than the 29-year high in mid-2004.
