The National Government is ramping up efforts to tackle New Zealand’s housing crisis, prioritising liveable solutions over the unacceptable reality of families forced to sleep in cars. From fast-tracking projects to cutting costs with overseas building materials, the strategy centres on speed, simplicity, and pragmatism.

But Auckland seems to be marching to the beat of its own drum, raising questions about whether it’s the rebellious child in the family.

National's Initiatives: A bold push for housing supply

The government’s housing strategy features several decisive measures aimed at boosting supply:

  • Streamlining building materials: Opening the doors to more overseas products to cut costs and delays.
  • Standardising council regulations: Ensuring consistency across the country to avoid conflicting interpretations of planning rules.
  • Accelerating projects: Fast-tracking 149 housing developments to deliver homes more quickly.
  • Private certifiers for inspections: Reducing bureaucracy to speed up construction.

 

Prime Minister Christopher Luxon has emphasised the urgency of the housing issue, even demonstrating a personal pivot. He’s sold three of his properties, possible having another on the market—perhaps a nod to the challenges of today’s housing market.

Auckland Council's Contrarian Approach

While the National Government pushes for rapid growth, Auckland Council has introduced policies that seem to throttle housing supply. These measures, though focused on long-term quality and sustainability, may conflict with the government’s growth agenda.

  1. PC 79: New Development Rules
    Developers now face stricter requirements, including mandatory pedestrian footpaths, loading zones, and disabled parking. While these rules aim to improve liveability, they reduce the number of dwellings developers can include in a project.
  2. Infrastructure Limitations
    Watercare’s newly published map highlights areas with water and wastewater constraints, effectively halting development in affected zones. Worse still, developers can’t fully assess these limitations until they’ve already engaged engineers, designers, and town planners—a costly gamble.
  3. Increased Development Contributions
    Developers are now subject to significantly higher fees, particularly in areas with Kāinga Ora projects, further straining already tight budgets.
  4. Stricter Enforcement of KDL (Kitchen, Dining, Living) Standards
    Though these guidelines have long existed, Auckland Council has recently ramped up enforcement, making compact, affordable terraced houses increasingly unfeasible.

The Challenge in Auckland

Beyond regulatory hurdles, Auckland faces a fundamental mismatch between supply and demand. Over the past 12 months to September 2024, Auckland lost more than 10,000 jobs, while an oversupply of housing continues to grow.

For example, recent years have seen annual new builds rise from fewer than 4,000 homes to nearly 20,000. In Westgate alone, approximately 10,000 homes sit empty or temporarily rented as developers wait for better market conditions. This glut risks further destabilising property values, leaving Auckland in a precarious position.

Finding Balance: Quantity vs Quality

The disconnect between the National Government’s drive for rapid housing expansion and Auckland Council’s focus on sustainability reflects the complexity of New Zealand’s housing crisis. While the government prioritises supply to meet urgent needs, Auckland aims to balance growth with long-term liveability and infrastructure challenges.

The question remains: Can these competing visions align to make Auckland a thriving, liveable city once again?

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