The government has agreed to allow some building product manufacturing to restart in Auckland under Level 4 to support housing construction.
Materials are running out or running short right around the country because manufacturing and distribution has been hamstrung.
The Finance Minister Grant Robertson said they would allow manufacture of the four most critical products - plasterboard, gypsum plaster, coated roofing steel and insulation.
"Tonight's move to Alert Level 2 outside Auckland means residential construction activity can largely resume in New Zealand.
"However, the constrained availability of building products will be an issue and that is why the Government has acted," Robertson said.
The Ministry of Business, Innovation and Employment will decide who can operate.
The Building Minister Poto Williams said the manufacturing operations would use the minimum number of staff safely required under Alert Level 4 health and safety rules.
Only products that are a critical component of residential construction, and subject to limited supply, are eligible for the restart.
A change to the Health Order will be made over the next 48 hours.
The Building Industry Federation that represents suppliers, said the Government had listened to members' concerns.
The move would allow housing projects to carry on, builders to stay employed and people to move into their homes, it said.