Data for September, released by Rotorua Lakes Council yesterday, show there were six consents issued for new dwellings.
The total number of residential consents for last month was 87, up 22.5 per cent from September 2015, but the work value was down 43.9 per cent.
Commercial consents painted a more positive picture with the number of consents in September up 31.3 per cent and the total worth up 999.1 per cent compared with the same time last year.
As well as $10.2 million for the children's health hub and shared library project, a consent worth $1.2 million was issued for the construction of a checkout control office, alterations to the carpark and a covered walkway canopy at New World Westend.
Rotorua mayor Steve Chadwick said the local economy was definitely moving in the right direction with consents making up just one part of the bigger economic picture.
"Unlocking land for development is crucial and I've already stressed that that's something we're going to have to fast-track and put concerted effort into."
Roland Tissink of Tissink Builders said his firm was busy building houses - but just not in the city.
"Most of the new houses we are building are on the outskirts of town - out at the lakes or country. We're quite busy but have had a little trouble getting land.
"It has also proved difficult finding good staff and sub-contractors which of course hinders the work as well."
Mr Tissink said the lack of new house consents was not a reflection of a lack of desire to build.
"People want to build, it's just finding somewhere that they can do it."
Bill Clements, of W Clements Builders, the chairman of the Rotorua Master Builders Association, said residential building in Rotorua "hasn't been that healthy for a while".
"There are a lot of things that stop people from building and Rotorua's lack of land is a big one - you can't build a house on a wharf.
"Local residential hasn't been good lately but it does seem to be picking up. People I know are pretty busy but when it comes to new houses, it's more top-end, one-offs. For ordinary people the land's not available to be used."
Mrs Chadwick said the District Plan was another part of the puzzle by enabling development to happen and "ensuring adequate infrastructure to support further development".
"Then the other part of the picture is the landowners and developers and the decisions they make. The council can and does encourage further development but it's the landowners and developers who make the decisions that ultimately drive the rate of development."
She said she was confident Rotorua would start to see further development at a faster rate.
"Since the District Plan became operative at the end of June, the council has had an increase in inquiries and preliminary consent discussions with landowners whose properties could be subdivided.
"The District Plan provides for subdivision opportunities in several locations around the city, including areas not previously zoned for development. The potential is there for more than 1000 house lots but it all depends on landowners' and developers' decisions and any constraints that might apply."
Consents issued in September:
Commercial: 21, up 31.3 per cent on September 2015
Total value: $12.3 million, up 999.1 per cent on September 2015
Residential: 87, up 22.5 per cent on September 2015
Total value: $3.2 million, down 43.9 per cent on September 2015
