Ambitious targets for housing growth
The New Zealand government has announced ambitious new housing growth targets for the nation’s cities, aiming to make it easier to expand both up and out.
Housing and Resource Management Act (RMA) Reform Minister Chris Bishop (pictured above) outlined the Going for Housing Growth policy, which focuses on addressing the fundamentals that have led to unaffordable housing.
“Our Going for Housing Growth policy focuses on the fundamentals that have led to unaffordable housing for New Zealanders,” Bishop said.
“Our programme of reform involves freeing up land for development and removing unnecessary planning barriers, improving infrastructure funding and financing, and providing incentives for communities and councils to support growth.”
Key changes for development
Bishop detailed six changes that will be implemented to free up land for development. These include:
- Establishment of housing growth targets for Tier 1 and 2 councils
- New rules allowing cities to expand outwards at the urban fringe
- Strengthened intensification provisions in the National Policy Statement on Urban Development (NPS-UD)
- New rules requiring councils to enable mixed-use developments
- Abolition of minimum floor area and balcony requirements
- Making the Medium Density Residential Standards (MDRS) optional for councils
“New housing growth targets will be set for all existing Tier 1 and 2 councils, requiring them to ‘live-zone’ feasible development capacity for at least 30 years of housing demand at any one time,” Bishop said.
Supporting urban expansion and density
The government rejects the notion that cities can only grow outwards or that density is the sole solution. Instead, the plan makes it easier to build new houses in existing urban areas while establishing a right to build on city fringes, provided infrastructure costs are covered.
“We will make it easier to build new houses in existing urban areas, as well as work towards establishing an effective ‘right to build’ new houses on city fringes,” Bishop said.
Enabling mixed-use developments
The plan includes a focus on increasing mixed-use developments to make cities more livable and connected.
“We will require Tier 1 and 2 councils to enable a baseline level of mixed-use across their urban areas,” Bishop said.
Reducing construction costs
The government will abolish minimum floor area and balcony requirements, which can significantly increase the cost of new apartments.
Evidence from 2015 showed these requirements in Auckland increased the cost of an apartment by $40,000 to $70,000 per unit.
Making MDRS optional
The government will legislate to require councils to carry out a ratification vote to determine whether to retain, alter, or remove the MDRS from their urban areas.
However, all councils will be required to give effect to relevant housing growth targets and other outlined changes.
“The changes I’ve outlined today are just the start,” Bishop said. “There’s a lot to do on our infrastructure funding and financing system as well as incentives for growth and I’ll have more to say in the coming months.
“Solving our housing crisis will mean a more productive, wealthier and better New Zealand and today’s announcements are a step on the journey.”
Read the government media release.
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