New Zealand building consents rose 1.9% on a seasonally adjusted basis in January, clawing back some of December’s 4.5% decline. The monthly number is fine but the real story here is in the annual figures — and for the first time in a while, there’s something constructive to talk about.

In the year ended January 2026, 36,944 new homes were consented, up 9.3% from a year earlier. That’s a meaningful turn after two years of relentless declines that took the pipeline from nearly 50,000 consents down to the mid-33,000s. We’re not back to boom-era levels but the bleeding has clearly stopped and the recovery is gaining traction.

Multi-unit homes are doing the heavy lifting. Townhouses and flats rose 14% on the year to 16,175 consents while apartments surged 26% to 2,436. Stand-alone houses were up a more modest 5%. The one soft spot was retirement village units, down 7.7% — a niche category but worth flagging given New Zealand’s aging demographics.

Regionally, Auckland is driving this. The city accounted for nearly 60% of the national increase with 15,779 consents, up 13%. Canterbury added 7,398 (up 12%) and Wellington posted one of the stronger gains at 16%. The recovery isn’t evenly spread but it’s hitting the centres that matter most for overall supply.

The January month itself saw 2,528 new homes consented, up 15% from a very weak January 2025. Apartments and retirement village units more than doubled month-over-month but that’s the lumpiness of large projects rather than a sustained surge.

On the value side, total building work consented in the year ended January came to $28.4 billion, up 4.3% — with residential values rising 7.7% but non-residential essentially flat.

The trend series tells a cleaner story and it’s encouraging: the all-dwellings trend hit 3,285 in January, up from its trough of around 2,750 a year ago. That’s a housing sector that’s turned a corner, even if it still has a long way to climb.

For NZD, this feeds into the broader narrative of a New Zealand economy finding a floor. NZD/USD finished Monday down 52 pips to 0.5944.