The number of building consents for new homes has risen for the first time in three months.
Official figures show permits rose a seasonally adjusted 7 percent in May on the month before.
The Easter and ANZAC day holidays were held responsible for April's hefty 7.4 percent decline.
The monthly gain was driven by more than 2000 houses being consented, the highest in 12 years.
On an annual basis, consents totalled nearly 31,000 - the most since 2004.
A third of all consents issued in the past 12 months were in Auckland.