Mr Cooney put some of the surge in consents down to people getting in before the Reserve Bank's new loan-to-value ratios took effect, restricting the amount of cash banks could lend. There was a "bit of a panic" by people getting their deals signed up before the new lending rules came into force on October 1.
The spec building market had also taken off this year.
"A lot of people prefer to buy the finished product. We are building a lot more spec houses than a year ago."
The council's figures reinforced that the industry was on the path to recovery from the depths of the global credit crunch in late 2008 and early 2009 when consents issued for new houses in Tauranga bottomed out at less than 20 a month. It received 93 building consents in the first fortnight of this month.
Classic Builders sales manager Mark Hooper expected the upswing to continue for at least the rest of this year. "There is plenty of business out there."
Mr Cooney said demand depended on interest rates staying low and land prices not going up because about 60 per cent of the housing market was land and building packages up to $450,000.
Thorne Group director Peter Buck said they were getting more out-of-town inquiries, particularly from Auckland and Christchurch. Show home inquiries were also converting into sales more frequently.
Mr Buck said he had seen an escalation in spec houses being built over the last six months. Another big aspect of its business, the Urban Ridge subdivision, was in keen demand. Half of stage four's 30 sites had sold before building even started.
"The level of confidence in the market place is higher."
He said they had not seen the impact of the bank lending restrictions yet but expected a surge from buyers with pre-October 1 approvals over the next two or three months.
Signature Homes owner Craig Williams said spec builders were taking a calculated risk that the market had returned.
"We have been on the improve for the last couple of years and the last 12 months has improved even more."