Experts say it's promising but slow-burning
The New Zealand government has unveiled plans to overhaul the Resource Management Act (RMA), with the promise of easing housing prices and expanding supply—if the legislation can be successfully implemented.
Two new bills—the Natural Environment Act and the Planning Act—are expected to replace the current RMA framework by the end of the year, aiming to simplify planning processes, increase “permitted activities,” and establish clear environmental thresholds.
Officials estimate this could cut red tape and reduce compliance costs by as much as 45%, significantly more than the 7% reduction projected under the previous government’s proposals.
RMA Reform Minister Chris Bishop (pictured) and Undersecretary Simon Court argued that the current system has stifled development and hindered access to natural resources, RNZ reported.
“The RMA is broken and everyone knows it,” Bishop said. “It makes it too hard to build the infrastructure and houses New Zealand desperately needs… and hasn’t resulted in better management of our natural environment.”
More land, more homes—eventually
CoreLogic’s Kelvin Davidson supports the move, highlighting the potential long-term effect on house prices.
“If we open up more land, it should have an important impact,” Davidson said, noting that limited land availability has historically driven prices higher.
The CoreLogic chief economist added that while reforms could increase housing supply, the effects would likely be gradual.
“Don’t expect overnight results,” Davidson said.
He also pointed out that the benefits could be amplified when combined with lending restrictions such as debt-to-income ratios, RNZ reported.
A shift in planning philosophy
Brad Olsen, CEO of Infometrics, described the proposal as a significant change compared to previous piecemeal attempts at reform. “It’s quite a fundamental shift,” Olsen said. “I’d rather move in the direction of ‘let’s get stuff done.’”
He acknowledged the implementation would take time—pointing to the Fast-track Approvals Act as an example—but said the expected cost savings were meaningful.
“We might not see it in the next 12 months… but once it hits full speed, it will hit full speed quite quickly,” Olsen said.
Political unity key to lasting change
Shamubeel Eaqub, Simplicity chief economist, warned that the success of the reform hinges on lasting political consensus.
“It’s all very well to talk about bipartisanship halfway through the electoral term,” Eaqub said, referencing the failed bipartisan agreement on medium-density housing rules under the previous government.
He urged the government to foster transparent consultation and engage both supporters and critics.
“There needs to be an open debate… the government needs to not be afraid of confrontation.”
While the path to reform is complex, economists agree the proposed changes have the potential to reshape New Zealand’s housing market—if they are implemented with commitment and broad political support.
