The number of building permits issued for North East Victoria was up 12 per cent last year, the Victorian Building Authority says.
The regulator's data shows 6996 permits worth $1.4 billion were issued in the region, an increase of 12.26 per cent on 2020.
Across the state, the cost of domestic building permits issued increased by more than $4.3 billion, up from 96,367 in 2020 to 109,367 in 2021.
It was the first time that domestic permits topped 100,000 in a calendar year in Victoria.
All areas of the state experienced the growth in permits, with the biggest increase seen in the outer suburbs of Melbourne, followed by the North Central region and Gippsland.
VBA chief operations officer Jocelyn Crawford said another year of strong growth was a positive sign.
"Victorians have experienced a challenging two years, but as a community we have remained resilient and the industry has continued to grow, proving it to be the backbone of the state's economic future," she said.
Ms Crawford said the VBA would be ensuring all work is done in compliance with the Building Act.
"We are here to keep Victorians safe and protect both consumers and practitioners," she said.
"As we see growth, we must also work together to make sure the rules and processes are followed, and compliance is upheld."
In the first six months of the current financial year, building permits increased by 7.56 per cent compared to the same period in 2019-20.
While growth continues, Master Builders Victoria warned of the impacts of increasing costs for materials, combined with labour shortages.
IN OTHER NEWS:
Increase in prices for timber were reported to be as much as 30 per cent in 2021, while steel product prices increased by more than 25 per cent in Victoria.
The average cost of supplies used in home building rose 10.2 per cent in the year to September in Melbourne, compared to 5.9 per cent in Sydney and 8 per cent on average across Australian cities.
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