Escalating land values coupled with rising compliance, labour and material costs are making it difficult for first-home buyers to get on the property ladder.
However, some building companies are working with the council to provide more affordable house and land packages in the Bay.
Venture Developments director Mark Fraser-Jones said it had sold 500sq m Papamoa sections for $145,000 in 2012, and comparable sections were now about $250,000: "It is this increase that has seen house and land packages become much more expensive than they were 12 months ago."
However, its major cost "is without doubt health and safety, the cost to us now would be well over $500,000 per year ... we can only anticipate this cost to continue to increase as new legislation is introduced".
The cost of materials had risen about 5 per cent in 12 months as demand for labour increased, "so, too, has the labour rates".
However, when it released 15 Papamoa house and land packages in the affordable housing zone from $350,000, they sold out within two weeks, he said.
That demand gave the company confidence to launch a new Papamoa subdivision with 64 $350,000-$450,000 house and land packages.
"Everyone who is looking to buy and build their first home in that subdivision will be eligible for the KiwiSaver HomeStart subsidy. In essence this means a couple that has been in KiwiSaver for five years is given $20,000 by the Government towards their first home."
Classic Builders director Peter Cooney said "costs have increased and will continue to do so as long as there is supply and demand". The price of a new home had jumped at least 5 per cent in 12 months.
"That's a lot of money based on the average build being approximately $280,000. But remember we also had an increase of about 4 per cent last year and the year before that."
Mr Cooney said unless councils and developers got together to find a solution there was little hope for first-home buyers at the moment: "There has been so much talk but little work to date."
It was working with one council on a pilot project "but it's early days ..."
Master Electricians chief executive Neville Simpson said its average wage and salary survey revealed rates had gone up about 5 per cent in Tauranga. Before that they had not changed for five years, "so in some ways this is a bit of a catch-up". Electricians' margins were "still very thin ... "
Tauranga City Council figures show the number of consents issued for new dwellings was 1135 for 2014/15 - the most since 2005/06's 1188.
QVhomevalue Registered Valuer David Hume said land values in prominent subdivisions such as The Lakes and Golden Sand had shown good growth, with sections previously in the $160,000-$180,000 range now selling for $200,000-$220,000.