Auckland's housing supply is set for a big boost after there was almost one-third more new homes given approval for construction than a year earlier, planners say.

The Auckland Council figures showed that in the first six-months of the year, 12,300 new dwellings were given approval to be built - the highest number since 2004.

The number of consents granted in the 10 months to May were also up 27 per cent compared to the same period the year before with about 90 per cent of these to be built in Auckland's existing urban area.

Mayor Phill Goff said the extra homes would help "bridge the shortfall of houses needed to cater for our rapid population growth".


"[They were also] helping deliver a more compact city, ensuring Aucklanders are living closer to transport links, employment centres and public amenities," he said.

The growth in planned construction comes as many commentators have lamented Auckland's lack of housing supply as a major reason why values have skyrocketed over the past decade.

In many city suburbs, home values have more than doubled since the last market peak in 2007.

Shortly after coming to office, the Labour-led government claimed nearly 45,000 new homes were needed in Auckland to address the shortage.

The previous National Government more conservatively estimated the shortage across the country to be 35,000-40,000 homes.

Analysts CoreLogic also welcomed the continued growth in Auckland consents in a separate report released today.

Senior analyst Kelvin Davidson said the "absolutely necessary house-building upswing" was great news.

"The general consensus seems to be that we're now at levels of construction in Auckland that at least stop the existing shortfall from getting any worse," he said.


The city's major planning document, the Auckland Unitary Plan, makes room for more than one million new dwellings to be built in the future, with recent estimates suggesting around 340,000 are "commercially feasible", Auckland Council said.

About 60 per cent of this future growth is planned for existing urban areas.

Auckland Council's planning committee chair and councillor Chris Darby said the plans to build most new housing in existing urban areas meant the range of housing stock, ranging from apartments to larger homes, would increase.

The new figures on building consents also revealed that around 40 per cent were granted along Auckland's existing train and northern busway network, he said.

"There is a strong case for more investment in rapid public transit, including rail, light rail and busways, to provide people with greater access to frequent and efficient transport services," he said.

"This is becoming an important factor for people when choosing where they want to live."


He said that while land is cheaper in rural areas on the city's outskirts, it was expensive to build infrastructure to support these developments, while those living in these areas also faced added costs from commuting and travelling to community facilities.

Building consents snapshot

• 90 per cent of new dwellings given consent in the 10 months to May 2018 were in existing urban areas

• Terraced houses and apartments made up 54 per cent of all new dwellings given consent as compared to 37 per cent two years ago

• In the urban area, about 66 per cent of new dwellings are multi-unit housing blocks

• About 40 per cent of all new consents are on the existing train and northern busway network